New Delhi, Dec. 9 -- Despite external headwinds, India's economic growth rate in FY26 is expected to remain robust, supported by favourable domestic conditions, according to a recent IMF report. Under the baseline assumption of prolonged 50 per cent US tariffs, India's real GDP is projected to grow at 6.6 percent in FY 2025-26 before moderating to 6.2 percent in FY 2026-27, the report stated.

It highlighted that the reform of the goods and services tax (GST) and the resulting reduction in the effective rate are expected to help cushion the adverse impact of tariffs. Headline inflation is projected to remain well contained, reflecting the one-off effect of the GST reform and continued benign food prices. Looking ahead, India's ambition to...