The updated IMF outlook considers the ripple effects of new trade policies and global negotiations taking place amid a climate of heightened uncertainty.

The IMF projects India’s economy to grow 6.6% in FY26, outpacing China’s 4.8%, driven by strong Q1 performance despite US tariffs, while urging fiscal and structural reforms.

The current shift highlights India's rising influence in the global economy and the significant challenges facing China under renewed US tariffs.

The International Monetary Fund (IMF) has raised India's growth forecast by 0.2 percentage points to 6.6% for the 2025/26 fiscal year as the country's strong growth momentum is seen offsetting the impact of high U.

This upward revision is attributed to strong economic performance in the first quarter, which has more than offset the effects of increased US tariffs on Indian goods.

The IMF forecast comes after the World Bank, which on October 7 updated its outlook for India, raising the FY26 growth forecast to 6.5 per cent from 6.3 per cent while lowering the FY27 projection to 6.

Even as it cut next year’s growth forecast, the IMF sees India growing 6.6% in the current fiscal, up from 6.4% it had previously projected. This is lower than the RBI's projection of 6.8%.

This special report covers the major market-moving news, including the controversy over Foxconn's alleged investment in Tamil Nadu, rising US-China trade tensions, and the IMF's latest forecast for India.

CHENNAI: The International Monetary Fund (IMF) has projected that India’s economy will grow at 6.6 percent in 2025–26, maintaining its position as the world’s f