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Time of India
23-07-2025
- Business
- Time of India
IMF urges India to ease import curbs, liberalise FDI norms to maintain external balance
Advt India needs to reduce import restrictions, especially on intermediate goods, enhance the business environment to boost private investment, liberalise the foreign direct investment (FDI) regime and expand trade networks to sustain a healthy external balance, the International Monetary Fund (IMF) said in a report released suggested cautious implementation of industrial policies, minimisation of trade and investment distortions and maintenance of exchange rate flexibility to absorb shocks, with intervention used only during market external sector in FY25 was stronger than expected, driven by strong services exports and lower oil prices. However, risks remain with continued trade and capital account restrictions limiting export and import growth, according to the IMF's External Sector current account deficit (CAD) rose to 0.8 per cent of gross domestic product (GDP) in FY25 from 0.7 per cent of GDP in FY24, due to rising import demand amid strong services exports. It is projected to reach 0.9 per cent in FY26, "reflecting resilient domestic demand and a slowdown in external demand", the report the medium term, it is estimated to widen to around 2 per cent of GDP, aligning with India's development needs, it report analysed 30 economies based on external sector data as of May 27, 2025 and IMF staff projections in the April 2025 World Economic the first half of 2024, a contained CAD and portfolio inflows strengthened the rupee, but this reversed in the second half due to equity outflows and global uncertainty.
Economic Times
22-04-2025
- Business
- Economic Times
IMF cuts India's growth forecast to 6.2% in FY26 amid tariff uncertainty
Live Events (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel The International Monetary Fund (IMF) on Tuesday revised India's economic growth forecast for FY26 downwards to 6.2% from 6.5% earlier, citing the impact of trade tensions and global uncertainty triggered by the United States' imposition of FY27, the gross domestic product (GDP) growth projection has also been reduced to 6.3% from 6.5%.However, based on IMF projections, India's economic growth forecast is set to be the highest among emerging and advanced US has imposed a 26% tariff on imports from growth outlook for 2025 remains "relatively more stable", buoyed by consumption, especially in rural areas, according to the World Economic comparison, China's GDP growth forecast for 2025 has been downgraded to 4% from 4.6%. For the US, growth is projected to slow to 1.8% from 2.7% forecasted in the January 2025 WEO IMF noted that countries directly impacted by new tariffs, particularly China and the US, would be the most affected. However, countries in Asia and Europe will also feel the impact in the medium IMF now projects global GDP growth of 2.8% in 2025, a downward revision from the earlier forecast of 3.3%.Tariffs would also impact inflation India's inflation is expected to fall to 4.2% in FY26 and further to 4.1% in FY27.
