IMF Sees India's GDP Growth Trimmed To 6.2% In FY27 If High US Tariffs Stay

The International Monetary Fund sees India's gross domestic product growth in fiscal year 2027 trimmed to 6.2%, if the high US tariffs stay, according to the global financial body's 2025 Consultation Report released on Wednesday.

The projection of 6.2% growth in FY27 is lower than the 6.6% growth which the IMF has projected for India in FY26.

The US tariffs on Indian exports, which are as high as 50%, are seen as a notable drag on India's FY27 GDP performance, according to the IMF. However, New Delhi and Washington are currently locked in talks for a trade deal, which could end up significantly reducing the levies.

According to the IMF report, India's recent adjustment in goods and services tax (GST) rates is expected to offset the impact of tariffs on the GDP. In September, the GST regime was overhauled, which led to the tax slabs being cut to 5% and 18%, and the two other slabs — 12% and 28% — being removed. This led to a reduction in the tax rates on an array of consumption goods.

(This is a developing story)