The world is facing a trade war due to tariff tensions. The two largest economies, the United States and China, are facing each other. The global economy is slowing down, but India, on the other hand, seems invincible. Yes, the Indian economy will continue to be the fastest growing economy in the world. We are not saying this, but this good news has come from the International Monetary Fund itself. IMF has also increased India’s GDP growth forecast.
Even tariff tensions won’t put the brakes on growth
Be it Donald Trump’s tariff tensions or the worsening global trade situation due to US-China tensions, the Indian economy will continue to grow rapidly despite these challenges. IMF has increased India’s GDP growth forecast. In its new World Economic Outlook (WEO), the global body has projected India’s growth rate to be 6.6% in 2025, 10 basis points higher than the previous estimate made in July.
India will remain the fastest growing economy
The International Monetary Fund has raised its growth forecast for India, indicating that the country will retain its position as the world’s fastest growing major economy. This is despite a sharp decline in global production due to new trade restrictions and tariffs imposed by the United States. The World Economic Forum for October 2025 shows that India is defying the broader recession that has gripped both advanced and emerging economies.
Slowdown in the global economy including China
Although the IMF has given good news by raising India’s gross domestic product (GDP) growth forecast, it has also predicted a continued slowdown in the global economy, including China. The IMF estimates that global growth will decline from 3.3% in 2024 to 3.2% in 2025 and 3.1% in 2026. India’s GDP growth forecast for FY2026 is kept at 6.2%.
The global economy remains sluggish. Advanced economies are projected to grow only 1.6% in 2025-26, while Trump’s tariff-driven US growth rate will decline to 2.0%. China, the country most affected by US tariffs, is projected to grow by 4.8% in 2025 and 4.2% in 2026, according to the IMF.
IMF had praised India in the same way earlier also
It is noteworthy that just before increasing India’s GDP growth estimate, International Monetary Fund chief Kristalina Georgieva had praised India, saying that global growth patterns have been changing in the last few years and India is now emerging as the growth engine of the world. He also said that India is proving its skeptics wrong through its bold economic policies.
