IMF gives a thumbs up to India's growth, but says "stay careful"
The International Monetary Fund (IMF) just gave India a solid nod for its strong economy, even with global ups and downs.
India's GDP grew 6.5% in FY25 and jumped to 7.8% in the first quarter of FY26, helped by lower food prices and GST reforms expected to keep inflation well anchored.
What's next? Growth stays strong, but watch out for bumps
The IMF thinks India will keep growing—projecting 6.6% GDP growth next year—but expects things to slow a bit after that, partly because of ongoing high US tariffs.
The good news: GST changes and lower GST and personal income tax rates should help soften the impact and keep prices steady.
Still, the IMF warns about risks from tough global trade situations and unpredictable weather affecting crops.
Fiscal discipline is key if India wants to level up
While the IMF likes India's push to manage its budget better, it says sticking to spending limits is crucial for hitting deficit goals.
They're also nudging India toward more structural reforms if it really wants to join the ranks of advanced economies someday.