Current Affairs - Economy - Discussion

The International Monetary Fund (IMF) has revised India’s GDP growth forecast for 2025 upward to 6.6%, reflecting stronger-than-expected economic performance in the first quarter of the year. This revision accounts for robust domestic demand in consumption and services, policy continuity, and infrastructure investments, which helped offset the impact of newly imposed US tariffs. Despite external trade pressures, India’s economy maintained momentum due to these factors. However, the IMF has slightly reduced the 2026 forecast to 6.2%, citing potential delayed effects of tariffs, global economic uncertainties, and risks related to trade tensions.