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IMF: India’s Economic Growth Slows, Projected at 6.5% Through 2026

India’s economic growth has slowed more than anticipated, primarily due to a sharper-than-expected deceleration in industrial activity, according to the latest update of the International Monetary Fund’s (IMF) World Economic Outlook (WEO).

The IMF reported that India’s growth rate dropped from 8.2% in 2023 to 6.5% in 2024 and is projected to stabilize at 6.5% through 2026. This deceleration highlights challenges in sustaining industrial momentum, despite India’s position as one of the fastest-growing major economies.

Globally, economic growth remains steady but subdued. The IMF forecasts global growth at 3.3% for 2025 and 2026, below the historical average of 3.7% (2000–2019). While an upward revision in the United States’ growth forecast has balanced out downward revisions in other major economies, the global outlook remains cautious.

India’s slowdown comes amid efforts to navigate external challenges, including subdued global demand and inflationary pressures. Policymakers may face increased pressure to bolster industrial activity and sustain economic growth in the years ahead.

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