IMF Revises Down India's 2025 GDP Growth to 6.2%

The International Monetary Fund (IMF) has adjusted its forecast for India's GDP growth in 2025 down to 6.2%, a decrease from the previously estimated 6.5%. This revision is attributed to the escalating trade tensions and global uncertainty spurred by US President Donald Trump's tariff policies.

Global Economic Growth Faces Significant Downturn

The IMF has also significantly lowered its growth outlook for the global economy, the US, and China. The world economy's growth forecast has been reduced to 2.8%, marking a half-percentage point drop from earlier estimates. China's 2025 GDP growth is now projected at 4.0%, down from 4.6%, due to the impact of recent tariffs.

US Economy's Growth Projection Sharply Cut

The GDP growth projection for the US economy has been sharply reduced to 1.8%, nearly a full percentage point lower than the January 2025 forecast. The IMF warns that the current trade policy uncertainty and the implementation of tariffs could significantly slow global growth if sustained.

The IMF's report highlights the challenges facing the global economic system, stating, "The global economic system under which most countries have operated for the last 80 years is being reset, ushering the world into a new era."