International Monetary Fund (IMF) recently 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. According to the IMF forecast, India is projected to see one of the fastest growth rates among the BRICS countries, which represent half of the global population. However, it’s Ethiopia that has the highest growth forecast of 7.2 per cent. The average growth across BRICS countries is expected to be 3.8 per cent, much higher when compared to G7 countries.
On average, BRICS growth is expected to exceed G7 rates by more than threefold. The IMF’s forecasts project average growth for the G7 to be around 1 per cent. Ageing populations, reduced labour supply, and increased fiscal pressure are among the major factors why these countries are facing headwinds.
Most importantly, Germany is expected to witness one of the world’s slowest GDP growth rates in 2025. According to the IMF, the country’s GDP is expected to grow at just 0.2 per cent.
Indian economy grew by 7.8% in April-June
Meanwhile, India’s economy achieved a five-quarter high growth rate of 7.8 per cent in the April-June period, demonstrating significant momentum before the implementation of disruptive US tariffs.
Earlier in October, the World Bank also raised India’s growth forecast for the current fiscal year to 6.5 per cent from 6.3 per cent estimated earlier, stating that 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.
India TV News
