Ketaan Ram Kataria
Patna : The International Monetary Fund (IMF) has lowered India’s growth forecast to 6.2% for the fiscal year 2025-26, citing global trade disruptions and tightening financial conditions.
This downgrade is expected to impact both the national economy and regional economies like Bihar, which may face challenges in sectors like agriculture, manufacturing, and remittances.
Bihar’s economy, which relies heavily on agriculture, manufacturing, and remittances, may experience some strain as a result of the national downturn. A reduction in national growth could dampen demand for Bihar’s agricultural products and industrial outputs. Furthermore, a decline in remittances, especially from the Gulf countries, could affect household incomes, which are a vital component of the state’s economy.
Japan’s growth forecast for 2025 has also been downgraded to just 0.6%, reflecting the challenges faced by the country’s manufacturing and export sectors. Overall, the IMF has reduced its global growth outlook for 2025 to 2.8%, a 0.5 percentage point decrease from previous estimates.
The IMF attributes the slowdown to multiple factors, including the tightening of global financial conditions and the prolonged trade war between the U.S. and its trading partners. The ongoing tariff disputes have disrupted supply chains and led to greater uncertainty in international markets, impacting both advanced and emerging economies.
