IMF raises India's FY26 growth forecast to 7.3% | Quick Digest
The International Monetary Fund (IMF) has upgraded India's GDP growth forecast for fiscal year 2025-26 to 7.3%, an increase from its previous estimate of 6.6%. This revision reflects better-than-expected economic performance in recent quarters and strong momentum. The IMF also projects India's growth to moderate to 6.4% in 2026-27.
IMF upgrades India's FY26 growth forecast to 7.3%.
Revision driven by strong Q3 and Q4 economic momentum.
Projected growth for 2026-27 is estimated at 6.4%.
Inflation expected to return to target levels.
India remains a key driver of global growth.
The International Monetary Fund (IMF) has significantly upgraded India's GDP growth forecast for the fiscal year 2025-26 to 7.3%. This upward revision, an increase of 0.7 percentage points from its October projection, is attributed to the better-than-expected economic performance observed in the third quarter and strong momentum in the fourth quarter of the fiscal year. The Washington-based multilateral agency also revised India's growth forecast for the subsequent fiscal year, 2026-27, to 6.4%, a slight increase from its earlier estimate of 6.2%. The IMF's World Economic Outlook (WEO) update highlights that India continues to be a bright spot in the global economy, with its robust growth projected to remain strong. Official data from India's statistics ministry corroborates this optimistic outlook, indicating that GDP growth during April-September of 2025-26 registered at 8%, driven by an 8.2% expansion in the July-September period. Furthermore, the First Advance Estimates released by the Ministry of Statistics and Programme Implementation project the Indian economy to expand by 7.4% in the current fiscal year. The IMF also anticipates a moderation in inflation, projecting it to return to near target levels after a marked decline in 2025, largely due to subdued food prices. This economic resilience positions India as a key driver of global growth.
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