The International Monetary Fund (IMF) has projected India’s economic growth at 6.6% for 2025 and 6.2% for 2026, making it the fastest-growing economy among Emerging Market and Developing Economies. These projections highlight India’s strong economic momentum and resilience amid global uncertainties, reinforcing its position as a key driver of global growth.

The IMF on Tuesday released the World Economic Outlook Growth Projections report, projecting the growth rate for advanced economies and Emerging Market and Developing Economies. Releasing the report, the IMF noted, “The global economy is adjusting to a landscape reshaped by new policy measures. Some extremes of higher tariffs were tempered, thanks to subsequent deals and resets. But the overall environment remains volatile, and temporary factors that supported activity in the first half of 2025—such as front-loading—are fading.”

India emerging as key engine of global growth, says IMF Chief

Meanwhile, International Monetary Fund Managing Director Kristalina Georgieva stated that India is turning into a key engine of world growth. Her remark came ahead of the 2025 IMF-World Bank Annual Meetings. “Global growth is forecast at roughly 3 per cent over the medium term – down from 3.7 percent pre-pandemic. Global growth patterns have been changing over the years, notably with China decelerating steadily while India develops into a key growth engine,” noted the IMF Chief.

Highlighting the factors behind economic resilience, she outlined four reasons: improved policy fundamentals, private sector adaptability, less severe tariff outcomes than initially feared, and supportive financial conditions.