NEW DELHI: The International Monetary Fund (IMF) on Tuesday cut its economic growth forecast for India for the current fiscal year, citing increased trade tensions and global uncertainty.
The IMF lowered its forecast for the South Asian country to 6.2% from the 6.5% it had forecast in January for the fiscal year that started on April 1.
IMF recommends greater exchange rate flexibility for India
“For India, the growth outlook is relatively more stable at 6.2% in 2025 supported by private consumption, particularly in rural areas,” the IMF said in its World Economic Outlook report, where it slashed its forecasts for growth for most countries, citing the impact of U.S. tariffs.
For India, it said it was cutting its forecast due to “higher levels of trade tensions and global uncertainty.”
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