The IMF Managing Director Kristalina Georgieva has predicted that India’s economy will likely be “a little weaker” in 2025, despite steady global growth. She also highlighted ongoing uncertainties, particularly around U.S. trade policies, that could impact the global economic outlook.

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• IMF MD Kristalina Georgieva projects India’s economy to be weaker in 2025, though details will be revealed later in the World Economy Outlook update.
• She cited steady global growth in 2025 but noted regional divergences, with India expected to show a slight decline.
• Georgieva did not provide further explanation on why India’s economy would weaken but pointed to a global uncertainty.
• In contrast, the U.S. economy is performing better than expected, while the EU is facing stagnation.
• In China, deflationary pressures and domestic demand challenges persist, affecting its economy.
• Low-income countries remain vulnerable, with any new shock potentially having a serious negative impact.
• Georgieva emphasized uncertainty surrounding U.S. trade policies, especially regarding tariffs, taxes, deregulation, and government efficiency.
• This uncertainty, especially in global supply chains, is contributing to higher long-term interest rates worldwide.
• The IMF has projected India’s GDP to grow at 6.4% in FY2024-25, a significant drop from the 8.2% growth in FY2023-24.
• Nominal Gross Value Added (GVA) in India is expected to grow at 9.3% in FY25, slightly higher than 8.5% growth in FY24.