America has imposed 50 percent tariff on India.
The tariff imposed by America on India appears to be ineffective. The International Monetary Fund (IMF) has increased India’s growth estimates for the fiscal year 2025-26. IMF has increased India’s economic growth estimate by 0.2 percent to 6.6%. The IMF believes that India’s strong growth pace will balance the impact of high tariffs on US imports.
India’s GDP grew faster than expected by 7.8% in the April-June quarter. The reason for this was strong domestic consumption, due to which India remained the fastest growing large economy in the world. Even though US President Donald Trump’s imposition of up to 50% tariff on Indian goods has affected exports.
Because of this, growth estimates increased
The IMF said in its World Economic Outlook report that this increase in India’s growth rate for 2025-26 is due to the strong performance of the first quarter, which also balanced the impact of the US tariff increase from July. India’s financial year runs from April to March. However, IMF has reduced India’s growth forecast for the next financial year (2026-27) by 0.2 percentage points to 6.2%. This report was released in America.
Also read- India-Pakistan conflict resolved through tariffs in 24 hours, Trump again made a big claim
Growth may decrease next year
This upgrade of IMF has come after the estimates of the World Bank. Last week, the World Bank also raised India’s 2025-26 growth rate from 6.3% to 6.5%, but reduced the forecast for the next financial year from 6.5% to 6.3%, also due to US duty Told. The IMF has estimated that the average growth rate of emerging markets and developing countries will decline from 4.3% in 2024 to 4.2% in 2025 and 4% in 2026.
Impact of tariffs on demand
The report said that beyond China, many emerging economies have shown strength due to domestic reasons, but recent signs suggest that their future also looks somewhat fragile. Rising US tariffs have hit external demand and investment in export-led economies is slowing down due to trade policy uncertainty.