Global agencies have cut India’s development estimates by up to 0.5 percent for the current financial year.
Global agencies have cut India’s development estimates by 0.5 percent for the current financial year, although it has also said that the country will remain the fastest growing major economy. According to PTI news, all rating agencies have said in their estimate for FY 2026 that India will grow from 6.2 percent to 6.7 percent growth rate. This estimate has been said despite being caught in the recession of the American economy, the growth of China’s growth and the possibility of slowing in the economic activities of the countries globally.
Who guessed what
According to the news, the International Monetary Fund (IMF) and the World Bank have reduced India’s development estimates for 2025-26 to 6.2 percent and 6.3 percent respectively, amidst the tariff war and uncertainty on American trade policy. Earlier in January, the IMF and the World Bank had estimated India to grow at 6.5 percent and 6.7 percent respectively in the current financial year. The Indian economy is estimated to increase by 6.5 percent in the last financial year. According to the estimates of the Reserve Bank of India, the country’s economy will grow at the same rate even in the current financial year.
Similarly, the Economic Cooperation and Development Organization (OECD) estimated in March that India’s growth rate would be reduced to 6.4 percent from the earlier estimate of 6.9 percent. Similarly, Fitch Ratings had estimated the growth rate to be 6.4 percent, while S&P had estimated to be 6.5 percent. Moody’s Analytics has estimated the growth rate of 6.1 percent for the calendar year 2025. In its update in April, the Asia Development Bank had estimated India’s growth rate to be 6.7 percent in the current financial year, which is the first estimated estimated 7 percent. In January, India’s Economic Survey had estimated the country’s economic growth rate to be 6.6.8 percent in FY 2025-26.
Heavy uproar over tariff
On April 2, US President Donald Trump had announced a mutual duty or tax on imports from other countries equal to the duties levied by those countries on imports from the US. On 9 April, the US administration authorized the 90-day restriction on the implementation of most mutual charges, withdrawing a universal rate of 10 percent on almost all targeted countries, while the fees on most goods from China were increased to 145 percent. On 16 April, the US increased the fee on exports from China to 245 percent.
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