New Delhi – The International Monetary Fund (IMF) says India’s economy will grow at a solid 6.6 % this year (FY26), up from 6.5 % last year. The boost comes from a strong second‑quarter rebound and reforms to the country’s goods and services tax, GST 2.0.
The IMF warned that higher U.S. tariffs could slow demand for Indian exports, but the tax changes and summer growth should offset most of those hurt. By the next fiscal year, growth is expected to slow slightly to 6.2 %.
In the Asia‑Pacific region, economies kept pace in early 2025 even as challenges piled up. The IMF notes that protectionist moves, especially new U.S. tariffs, will likely dampen Asian exports in the near term. China, for example, is projected to grow 4.8 % in 2025, down from 5.0 % in 2024.
India remains the fastest‑growing major emerging market, with the IMF calling for policies that cut trade and investment barriers, boost productivity, and support the services sector. The report also stresses the need to manage aging populations and sharpen policy frameworks to resist future shocks.
Asia’s overall output is expected to stay fairly steady in 2025 and ease a little in 2026, with inflation easing in most emerging markets and lining up with target ranges by 2026. The region is set to contribute about 60 % of global growth in the coming years.
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Source: ianslive
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