India’s economic engine continues to defy global headwinds. The IMF, in its October 2025 World Economic Outlook, revised India’s GDP projection upward from 6.3% to 6.6%, citing resilient domestic demand, strong credit growth, and sustained government capital expenditure.
IMF Chief Economist Pierre-Olivier Gourinchas highlighted that India’s economic model is “anchored in consumption and digital transformation,” adding that the country’s medium-term fundamentals remain robust despite external challenges.
The upward revision contrasts with a cautious global picture. The IMF pegged global growth at 3.2%, noting that the world economy faces heightened risks from trade fragmentation, tightening financial conditions, and geopolitical uncertainty.
For India, strong performance in construction, manufacturing, and financial services has offset weakness in exports. Private consumption, which constitutes nearly 60% of GDP, remains buoyant thanks to rising urban employment and steady wage growth.
Meanwhile, inflation appears to be easing, with the Reserve Bank of India (RBI) maintaining a balanced stance. Governor Shaktikanta Das stated that India’s “soft-landing trajectory is intact,” and interest-rate stability could further encourage investment.
However, the IMF flagged potential risks from global tariff wars — particularly the impact of U.S. import restrictions on emerging market trade flows. The Fund also urged fiscal prudence and stronger export diversification.
Experts believe India’s digital push and infrastructure drive will keep it ahead of most peers. “We’re witnessing a structural upshift, not a short-term cycle,” said Radhika Rao, senior economist at DBS Bank.
Industry Insight – Industrial Front:
A 6.6% growth rate signals expansion opportunities across India’s industrial ecosystem. For the manufacturing and coatings sectors, it means higher demand for infrastructure materials, construction chemicals, and energy-efficient coatings. Industrial Front believes policy continuity and faster credit delivery to MSMEs will be key to sustaining this growth into 2026 and beyond.