IMF Boosts India's 2025 Growth Forecast to 7.3% Amid Global Trade Tensions

• The International Monetary Fund (IMF) has upgraded India's economic growth forecast for 2025 to 7.3%, a 0.7 percentage point increase.
• This revision is attributed to stronger-than-expected corporate earnings in the December quarter and sustained momentum into the fourth quarter.
• The IMF noted that the global economy has largely absorbed the immediate impact of recent tariff shocks, contributing to the positive outlook.
• India's growth is expected to moderate to 6.4% in 2026 and 2027, as 'cyclical and temporary factors' fade.
• The IMF also upgraded global growth forecasts, with the world economy showing resilience despite trade disruptions and increased investment in AI.

Why It Matters: IMF raises India's 2025 growth forecast to 7.3%, citing strong corporate earnings and global economic resilience.