India's eco growth to remain robust; GST reform to help cushion adverse impact of US tariffs: IMF
GST
Dated:- 26-11-2025
PTI
New York/Washington, Nov 26 (PTI) India's economy is estimated to grow at 6.6 per cent in 2025-26, the International Monetary Fund said, noting that the Goods and Services Tax reforms are likely to help cushion the country from the adverse impact of the 50 per cent tariffs imposed by the US.
“IndiaÂ’s economy has continued to perform well. Following the economic growth of 6.5 per cent in fiscal year 2024/25, real GDP expanded by 7.8 per cent in the first quarter of fiscal year 2025/26,” the IMF said in a statement after its Executive Board completed an annual assessment for India.
The International Monetary Fund (IMF) said that looking ahead, IndiaÂ’s ambition to become an advanced economy can be supported by advancing comprehensive structural reforms that enable higher potential growth.
Despite external headwinds, growth is expected to remain robust
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
impact rural consumption and reignite inflationary pressures, it added.
Headline inflation is projected to remain well contained, reflecting the one-off effect of the GST reform and continued benign food prices. “Headline inflation has declined markedly, driven by subdued food prices”, the IMF said.
It noted that the financial and corporate sectors have remained resilient, supported by adequate capital buffers and multi-year low non-performing assets. Fiscal consolidation has advanced, and the current account deficit has been contained, supported by resilient service exports.
IMF Executive Directors commended India's strong economic performance and resilience, which has benefited from sound macroeconomic policies and reforms. Amid high uncertainty, the Directors called for continued sound policies and noted that accelerated implementation of structural reforms will be critical to maintain stability and support IndiaÂ’s ambition of becoming an advanced economy.
They concurred with th
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
kely be scope for further monetary easing amid benign inflation dynamics. They broadly recommended continued efforts to enhance monetary transmission, as well as greater exchange rate flexibility to help the Indian economy absorb external shocks, with interventions aimed at addressing disorderly market conditions consistent with the integrated policy framework.
The IMF underscored that comprehensive structural reforms are critical to support IndiaÂ’s economic development.
Directors welcomed the recent labour market reforms and encouraged the authorities to enhance human capital and female labour force participation, continue with the public investment push, and strengthen the business environment.
They stressed that the deepening of trade integration can bolster IndiaÂ’s competitiveness and attract FDI. Investment in R&D and fostering innovation will also help support productivity-driven development. Advancing the green transition supported by greater access to concessional financing
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =