The International Monetary Fund (IMF) has lowered its economic growth forecast for India, attributing this adjustment to increased global uncertainty and rising trade tensions resulting from new trade policies implemented by the United States. In its most recent World Economic Outlook report, the IMF revised India’s anticipated growth rate for the current fiscal year from the previously estimated 6.5% in January to 6.2% for the fiscal year commencing on April 1. Nevertheless, the IMF acknowledged that India’s economic outlook remains relatively stable, bolstered by robust private consumption, particularly in rural regions. The report, however, underscored that the escalation of global trade tensions, notably the effects of U.S. tariffs, played a significant role in prompting this downward adjustment.
