IMF Projects India’s GDP Growth at 6.6% for 2025, Retains Strong Outlook

The International Monetary Fund (IMF) has projected India’s GDP growth at 6.6% for 2025, reaffirming the nation’s position as one of the fastest-growing major economies in the world. The forecast, part of IMF’s latest World Economic Outlook report, underscores India’s strong domestic demand, digital transformation, and capital investments as key drivers of expansion.

According to the report, India’s services sector, led by IT, fintech, and logistics, will continue to anchor economic resilience. Manufacturing and infrastructure development, supported by government incentives such as the Production Linked Incentive (PLI) scheme, are also expected to contribute significantly to growth.

However, the IMF cautioned that external challenges like global inflation, geopolitical tensions, and high oil prices could temper the pace of expansion. “India’s economic fundamentals remain strong, but structural reforms must continue to sustain momentum,” the report noted.

Economists view this projection as a positive sign for investors, especially with India’s continued efforts toward fiscal discipline, rural development, and industrial diversification.