Archive · 25 Oct 2025
IMF: India's Economy Projected To Outpace China; Leather Exports Decline
The IMF predicts India's economy will grow by 6.6% in 2025 and 6.2% in 2026, faster than China's growth.
This is due to strong domestic demand.
Globally, growth is expected to slow slightly.
The US is increasing tariffs on leather goods exports from India.
Leather and leather goods exports are expected to decrease, while the domestic market stays strong.
The IMF urges governments to use credible economic policies.
IMF projects India's economy to grow at 6.6% in 2025, outperforming China.
India's projected 2026 growth is 6.2%, citing potential slowdown.
Global growth is projected at 3.2% in 2025 and 3.1% in 2026.
Leather exports are set to fall 5-8% in FY26 due to global trade woes and US tariffs.
The domestic market remains strong, offsetting export decline.
- Who
- International Monetary Fund (IMF), Indian Leather Products Association (ILPA)
- What
- Projects India's economic growth and anticipates decline in leather exports.
- When
- 2024-2026 fiscal years
- Where
- Global economies, India
- Why
- Due to changing economic conditions, trade policies, and global headwinds.
Global Economic Uncertainties
Maintaining Economic Stability
Tariffs and Trade
Global Economic Uncertainties
Prolonged uncertainty, more protectionism, and labor supply shocks could dampen future growth.
Maintaining Economic Stability
Some extremes of higher tariffs were tempered, thanks to subsequent deals and resets.
Fiscal and Policy Stability
Global Economic Uncertainties
Fiscal vulnerabilities, potential financial market corrections, and erosion of institutions could threaten stability.
Maintaining Economic Stability
The IMF emphasized the need for maintaining fiscal prudence and policy stability as key factors supporting growth.
- India's Projected FY25 GDP Growth
- 6.6%
- India's Projected FY26 GDP Growth
- 6.2%
- China's Projected FY26 GDP Growth
- 4.8%
- Global Growth Projection (2025)
- 3.2%
- Leather Exports Decline (FY26)
- 5-8%
- US Tariff on Indian Leather Goods
- Up to 58%
Sources
IMF Projects Indian Economy To Grow At 6.6% In Financial Year 2025
IMF Projects Indian Economy to Grow at 6.6% in FY 2025
India set to outpace China in FY25 as IMF projects 6.6% growth amid tariff uncertainty
IMF sees 6.6% GDP growth for Indian this fiscal
India resilient to global odds in exports: WB
IMF Projects Indian Economy To Grow At 6.6% In FY 2025 Despite Dim Prospects For Global Growth
'India unfazed by Trump's tariffs': IMF ups forecast to 6.6%, China trails at 4.8%
Indian economy to grow 6.6% in 2025 despite US tariffs, projects IMF; warns of global ‘uncertainty’
India To Grow 6.6% In 2025, Outpacing China At 4.8%, Says IMF — How The Economy Is Defying Global Headwinds
