Donald Trump tariffs to hit global economy exhausting! IMF cuts India’s GDP growth forecast to 6.2% for 2025; says it’s relatively more stable

For India, the growth outlook is relatively more stable at 6.2 p.c in 2025, stated IMF. (AI picture)

India’s GDP growth outlook for 2025 has been revised downwards to 6.2% by the International Monetary Fund (IMF) in its World Economic Outlook report for April 2025. In its January world growth outlook report, the IMF had predicted a 6.5% GDP growth charge for the Indian economy.
The revision in growth outlook comes on the again of elevated uncertainty due to US President Donald Trump’s tariff strikes. “For India, the growth outlook is relatively more stable at 6.2 percent in 2025, supported by private consumption, particularly in rural areas, but this rate is 0.3 percentage point lower than that in the January 2025 WEO Update on account of higher levels of trade tensions and global uncertainty,” IMF stated in its report.
IMF has additionally drastically revised downwards the growth outlook for the global economy, the US and China. The growth forecast for the world economy has been minimize to 2.8% down half a proportion level from the sooner estimates.

Global growth revised down considerably

For China, 2025 GDP growth is revised downward to 4.0 p.c from 4.6 p.c within the January 2025 WEO Update. This displays the affect of lately applied tariffs, which offset the stronger carryover from 2024 (on account of a stronger-than-expected fourth quarter) and financial growth within the price range, IMF stated.
Growth in 2026 can also be revised downward to 4.0 p.c from 4.5 p.c within the January 2025 WEO Update on the again of extended commerce coverage uncertainty and the tariffs now in place, IMF added.
The GDP growth projection for the US economy has been minimize sharply to 1.8%, down virtually a full proportion level from the January 2025 projection.
“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. Existing rules are challenged while new ones are yet to emerge,” stated IMF.
“Since late January, a flurry of tariff announcements by the United States…The resulting epistemic uncertainty and policy unpredictability is a major driver of the economic outlook. If sustained, this abrupt increase in tariffs and attendant uncertainty will significantly slow global growth,” it warned.