country’s GDP
These days, foreign companies are continuously showing good outlook regarding the economic growth of the country. After S&P Global, now IMF i.e. International Monetary Fund has also made a positive estimate on India’s GDP growth. IMF has said that India’s economic growth is expected to be 6.6% in 2025-26. Along with this, he said that due to the reforms related to GST, India is likely to get help in dealing with the impact of America’s 50% tax.
IMF said this in a statement issued after its annual review. The organization said that India’s economy is continuously doing well. After economic growth of 6.5% in 2024-25, real GDP is expected to grow by 7.8% in the first quarter of 2025-26. IMF says that if India continues reforms on a large scale in the future, then its goal of becoming a developed country can be further strengthened. This will pave the way for faster growth in the future. The organization said that despite the challenges coming from the world, due to the good conditions inside India, rapid economic growth is expected to continue.
GDP will increase even after tariff
The IMF estimates that even if the US’s 50% tax continues for a long time, India’s real GDP will grow at 6.6% in 2025-26 and will decline to 6.2% in 2026-27. The organization says that due to GST reform and reduction in effective tax rate, the impact of America’s high taxes will be somewhat reduced.
America has imposed a 50% tax on India, which includes a 25% tax on purchasing energy from Russia. However, IMF also said that there may be some big threats to the Indian economy in the coming times. The good thing is that if India signs new trade agreements quickly and implements reforms in the country quickly, then exports, investment and employment can get a boost. But the downside is that due to increased economic instability in the world, money conditions may become tight, prices of raw materials may increase and there may be pressure on trade, foreign investment and economic growth.