IMF raises India's GDP growth forecast to 6.6 pc for FY26
New Delhi (PTI): International Monetary Fund (IMF) on Tuesday revised upwards India's GDP growth forecast for the current fiscal to 6.6 per cent compared to its earlier estimate of 6.4 per cent on the back of strong growth, offsetting the impact of US tariffs on Indian shipments.
In its latest World Economic Outlook (WEO), the multilateral lending agency also lowered the growth forecast by 20 basis points to 6.2 per cent for 2026-27.
"Compared with the July WEO Update, this is an upward revision for 2025, with carryover from a strong first quarter more than offsetting the increase in the US effective tariff rate on imports from India since July, and a downward revision for 2026," the report said.
The Indian economy grew by 7.8 per cent in April-June -- the highest in five quarters -- before the disruptive US tariffs were imposed.
Earlier this month, the World Bank also raised India's growth forecast for the current fiscal to 6.5 per cent from 6.3 per cent estimated earlier, saying the country is expected to remain the fastest-growing major economy.
In July, the IMF revised its forecast for India's economic growth to 6.4 per cent for both 2025 and 2026. In its April 2025 World Economic Outlook, it had projected the country's economic growth at 6.2 per cent for 2025 and 6.3 per cent for 2026.
The IMF further said global growth is projected to slow from 3.3 per cent in 2024 to 3.2 per cent in 2025 and to 3.1 per cent in 2026.
This is an improvement relative to the July WEO Update -- but cumulatively 0.2 percentage point below forecasts made before the policy shifts in the October 2024 WEO, with the slowdown reflecting headwinds from uncertainty and protectionism, even though the tariff shock is smaller than originally announced.
For emerging market and developing economies, the IMF said the growth is projected to moderate from 4.3 per cent in 2024 to 4.2 per cent in 2025 and 4 per cent in 2026.
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India progressing under PM Modi, Karnataka heading towards decline: Union Minister Kumaraswamy
Bengaluru (PTI): Union Minister H D Kumaraswamy has said while India is moving steadily towards becoming the world’s third-largest economic power under Prime Minister Narendra Modi's leadership, Karnataka is heading in the opposite direction under the Congress government.
Speaking at a programme to mark the 101st birth anniversary of former Prime Minister Atal Bihari Vajpayee, along with the Atal Award presentation and Good Governance Day celebrations, the JD(S) leader said Karnataka was once a model state for governance and development.
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“Karnataka was once synonymous with exemplary governance. It had adopted an outstanding development model and emerged as a leader for the entire nation. But under the Congress government’s administration, all these distinctions have been lost, and the State is now moving in the opposite direction,” Kumaraswamy said.
He alleged that the current dispensation has completely damaged the education sector, noting that Karnataka was once a frontrunner in education.
“Karnataka, which once ranked first in good governance, has reached such a state today. Frivolous politics is being played in a good State. Administration across all departments; including health, education, agriculture and revenue has deteriorated. People must now seriously introspect,” he said.
Asserting that the era of good governance must return, Kumaraswamy said people are fed up with the misgovernance of this government.
Bengaluru, once the IT-BT capital and a hub of education and technology, has seen its infrastructure completely deteriorate, he said.
"The state government lacks the mindset to accept even well-intentioned and expert advice. It has developed a culture of speaking irresponsibly even about Prime Minister Narendra Modi and Union Home Minister Amit Shah.”
Noting that the state has all the potential and capacity to move forward, the union minister said, “At a time when India is stepping forward to become the world’s third-largest economic power under Modi government, one wonders in which direction Karnataka is heading? It is moving backwards and sliding into decline.”
Remembering Vajpayee as “Ajatashatru”, a leader without enemies who rendered long and distinguished service to the nation, Kumaraswamy said leaders like Vajpayee are rare today.
“His contributions as External Affairs Minister, Leader of the Opposition and Prime Minister were immense. He was a visionary leader who took the BJP from just two seats to 170 seats in Parliament,” he added.
Expressing concern over growing unrest, he said, “Karnataka must once again become a garden of peace for all communities. There is unrest in society. When one looks at what is happening within families, it causes anxiety. While technology is advancing and economic strength is increasing, there is fear even in turning on the television in the morning. There is no peace of mind for anyone. It is for this reason that I have advocated teaching the Bhagavad Gita at the school level. Unfortunately, politics is being unnecessarily mixed into this issue."
