New Delhi, Nov. 27 -- India's economy is expected to grow 6.6 per cent in 2025-26 despite prolonged US tariffs, according to the International Monetary Fund (IMF).

It noted that the recent Goods and Services Tax (GST) reforms and a lower effective tax rate will help soften the impact of the 50 per cent US duties, which include a 25 per cent levy linked to India's Russian energy purchases.

The IMF highlighted that India continues to show strong momentum, with GDP rising 7.8 per cent in the first quarter of FY26 after 6.5 per cent growth in FY25. Growth is expected to moderate to 6.2 per cent in FY27 if tariffs persist, reported PTI.

The Fund cautioned that global fragmentation, higher input costs, tighter financial conditions, or advers...