New Delhi, April 23 (HS): India is once again ready to lead the global economy. Despite the International Monetary Fund (IMF) reducing its gross domestic product (GDP) growth forecast for the financial year 2025-26 to 6.2-6.7 percent, India will continue to be the fastest growing country.

In a statement released on Wednesday, the Ministry of Finance said that despite global uncertainties and a decline in growth forecasts for other major economies, India is prepared to maintain its leadership in global economic growth. The Ministry stated, With improvements in infrastructure, innovation, and financial inclusion, India continues to enhance its role as a key driver of global economic activity.

The Ministry’s report highlights that, amid the ongoing tariff war and uncertainty in U.S. trade policy, international organizations have downgraded India’s growth forecasts for the financial year 2025-26 by up to 0.5%. Nevertheless, India is set to remain the fastest-growing major economy.

The IMF estimates a growth rate of 6.2% for 2025-26 and 6.3% for 2026-27, reflecting India’s robust position compared to similar economies globally. In contrast, global growth is projected to be quite low, at 2.8% in 2025 and 3.0% in 2026. The IMF has also revised down growth rates for other significant economies, with China’s GDP forecast decreasing from 4.6% to 4.0% for 2025, while the U.S. could face recession with a growth estimate of just 1.8%.

Despite these challenges, India’s economic growth is expected to remain between 6.2% and 6.7% for the current financial year, supported by strong infrastructure and strategic government initiatives.

The World Bank has set India’s growth forecast at 6.30% for 2025-26, with similar estimates from Fitch Ratings (6.4%) and S&P (6.5%). Moody’s Analytics predicts a growth of 6.1% in 2025. The Reserve Bank of India also expects a growth rate of 6.5% for the previous financial year 2024-25.

Hindusthan Samachar / Jun Sarkar