India’s economy is set to keep charging ahead, shrugging off new US tariffs like a pro. The International Monetary Fund (IMF) just bumped up its outlook, forecasting a solid 6.6% growth for 2025-26. That’s the fastest among big emerging markets, leaving even China in the dust at 4.8%. This rosy view comes straight from the IMF’s fresh World Economic Outlook report, which credits India’s killer first-quarter performance—clocking in at 7.8%—for soaking up most of the tariff hits.
Sure, the global picture isn’t all sunshine. The IMF sees world growth dipping to 3.2% in 2025 and a tad lower to 3.1% in 2026, a notch below earlier guesses. Advanced economies like the US are expected to chug along at just 1.6% on average, with America hitting 2.0% and Spain leading the pack at 2.9%. Emerging spots will do better at 4.2%, though that’s a slight slowdown from last year. Inflation’s cooling worldwide, but it’ll stick around above targets in places like the US, while easing faster elsewhere.
For India, the momentum from that strong start should carry over, even as growth might ease a bit to 6.2% in 2026. Last year’s real GDP jumped 6.5%, and the government is eyeing 6.3-6.8% for the coming year, banking on rock-solid local spending to keep things humming.
Not to be outdone, Deloitte India chimed in with its own upbeat take, hiking its 2025-26 growth call to 6.7-6.9%, averaging 6.8%—that’s 0.3 points higher than before. The consulting giant points to peppy home demand, easy money policies from the central bank, and smart fixes like GST 2.0 as the big boosters. Low prices mean folks have more cash to splash, especially with holidays around the corner, and that could spark even more buying.
But hey, it’s not all smooth sailing. The IMF flags big worries like long-term unknowns, rising trade walls, worker shortages, shaky budgets, and wobbly markets or rules. They urge leaders everywhere to roll out clear, honest plans that build trust—think smart tweaks to money policies, big-picture fixes, and better trade chats to dodge the drama.
