Former Deputy Managing Director of International Monetary Fund (IMF) and famous economist Geeta Gopinath has said that IMF can increase the estimate of India’s economic growth rate to closer to 7%. He said on Wednesday that India’s economy is performing better than expected and in the coming update, IMF can present India’s growth forecast with stronger data.
Gopinath said that in October this year, IMF had increased the economic growth rate of 2025 for India to 6.6%. But this estimate was released at a time when new figures for the second quarter had not come out. Now India’s GDP growth in the July-September quarter has been 8.2%, after which the IMF can take it to around 7% while updating its estimates. He said that India is doing better today than was estimated before the crisis.
The world is getting a boost from Artificial Intelligence
According to Times Network, he told that not only IMF, but many multilateral agencies, brokerage companies and economists have also increased India’s GDP growth forecast. Strong growth in the July-September quarter has further improved the economic outlook. India’s economy is growing at a fast pace and domestic demand, investment and production are showing improvement.
Gopinath also spoke at the global level. He said that despite the situation created around the world regarding tariffs, the global economy has shown great strength. According to him, different parts of the world have been able to recover due to different reasons. Geeta Gopinath said that Artificial Intelligence has created a new path of progress across the world. Increasing spending and investment on AI is strengthening the economies of many countries, which has reduced the negative impact of tariffs on trade to some extent.
Midterm elections may be held in America
He warned that one should not think that higher tariffs are not a problem for the world. He also said that the impact of tariffs is very significant and the world will still feel the impact of this changing geo-economic environment in the coming years.
While talking about the issue of tariff, Geeta Gopinath shared important hints related to America. He said that the time of “peak” in terms of tariffs in America has now passed or is close to it. There are many reasons for this. The first big reason is that midterm elections are to be held in America in 2026. In such a situation, no government or leader wants economic uncertainty before the elections.
There is less possibility of further increase in tariffs
He said that American tariffs have increased the prices of goods there and increased inflation by about 0.7 percentage points. The rising prices have affected the lives of common people and they are finding it difficult to bear the expenses. For this reason, the possibility of further increasing tariffs in America is decreasing.
Apart from this, he said that legal challenges have emerged regarding tariffs in America, which can reduce these duties in future. Therefore, Geeta Gopinath believes that in America we have passed the highest phase of tariffs or are very close to it.
This makes it clear that India’s economic condition is strengthening and international institutions, especially the IMF, are more optimistic than ever about India’s future. IMF’s estimate increasing to closer to 7% would be a very positive news for India. At the same time, amidst global trade and tariffs, the world is now looking for a new economic direction and India is emerging as a strong player in this change.
