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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Minister Patil chairs industry meetings to chart growth for key sectors in Karnataka
Bengaluru (PTI): Karnataka Minister M B Patil on Tuesday chaired meetings with industry representatives from the aerospace and defence, machine tools, auto/EV, and green energy sectors to discuss sector growth and government support measures.
The meetings were attended by leading industrialists and their representatives, with some participating virtually.
Speaking on the occasion, the minister for Large and Medium Industries said Karnataka is at the forefront of the country’s aerospace and defence sectors.
He noted that Suzuki and Toyota plan to launch aerial taxi services in Japan by 2028, with Bengaluru-based Sasmos supplying electrical equipment for the project.
Industrialists suggested introducing similar “fly-taxi” services in Karnataka through an appropriate policy, which Patil said would be examined seriously.
The minister highlighted the need to establish testing centres and Common Facility Centres for the aerospace and defence industries and assured that these facilities would be provided.
Suggestions were also made to prepare a comprehensive roadmap for sector growth.
Karnataka has urged the Central Government to approve Defence Corridor projects in the Bengaluru North–Kolar–Chikkaballapur and Dharawada–Vijayapura–Belagavi regions.
Industrialists also suggested a corridor between Bengaluru and Mysuru, Patil said.
He said Karnataka aims to become a hub for defence electronics manufacturing, with plans to establish a 200-acre Defence Electronics Park and a 100-acre Avionics and Sensor Park.
These projects will be implemented once the Special Investment Region is operational, and land availability will not be an issue.
On the machine tools sector, Patil said the industry has recorded an annual turnover of Rs 36,500 crore and is witnessing steady growth.
Large-scale exhibitions have increased demand, and the state must strengthen its capabilities to develop control systems for heavy machinery. One testing unit is already operational in Bengaluru, with another planned for Tumakuru. Expansion of vocational training institutes in industrial areas is also underway.
In the Auto and EV sector, Vision Group members highlighted the need for a network of dry ports and more EV charging stations across the state.
Patil noted that the Tata Group is manufacturing EV buses in Dharawada for nationwide supply. Plans for mini excavator production and export facilitation were also discussed, along with the establishment of a testing facility for two-wheeler EVs.
For the Green Energy sector, the group emphasised the need for a suitable policy on battery-based energy storage and the establishment of data centres.
Patil assured that the government will seriously consider all suggestions and respond positively.
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