The International Monetary Fund (IMF) has raised India's growth forecast for the current fiscal year by 0.2 percent.
With this, India remains the fastest-growing economy in the world.
According to the IMF's World Economic Outlook Growth Projection Report, India's growth rate is projected to be 6.6 percent in the fiscal year 2025-26, despite high US tariff rates. The US has imposed a 50 percent tariff on India.
India's growth rate in the first quarter of this fiscal year was 7.8 percent, primarily due to increased private consumption.
IMF Managing Director Kristalina Georgieva expressed strong confidence in India. She particularly acknowledged India's reform initiatives and its successful digital implementation strategy.
"I'm very big on India because of the boldness of their reforms. For example, everyone told India that digital identity on a mass scale could not be done... but India proved them wrong," she said.
During the organisation's bi-annual meeting of finance ministers and central bank leaders, Georgieva praised India's economic and structural modifications. She particularly hailed the changes in taxation, digital payments and Aadhaar implementation.
She specifically referred to the considerable GST modifications implemented in September.
The report also mentions other major economies in the world. According to estimates, China's growth rate may decline by 0.2 percent to 4.8 percent this fiscal year.
US growth is projected to decline by 0.8 percent compared to last year and could remain at 2.0 percent.