IMF Ups India's Growth Forecast to 7.3% for 2025-26

The International Monetary Fund (IMF) raised India's growth outlook for the fiscal year 2025-26 to 7.3%. It adjusted the GDP growth to 6.4% for 2026-27. This positive revision is supported by strong performances in previous quarters. Inflation is expected to decline, maintaining manageable levels in upcoming years.

The International Monetary Fund (IMF) has raised India's economic growth forecast for the fiscal year 2025-26 to 7.3%, an increase of 0.7 percentage points from its October estimation. This adjustment comes as the Indian economy outperformed expectations in the third and fourth quarters.

Furthermore, the IMF has revised India's Gross Domestic Product (GDP) growth projection for 2026-27 to 6.4%, slightly higher than its earlier prediction of 6.2%. This moderation reflects the subsiding impact of cyclical and temporary factors.

The IMF also highlighted a prospective decline in inflation rates, with projections close to the Reserve Bank of India's target. Global growth is anticipated to remain stable, with emerging markets seeing growth slightly above 4% in the coming years.

(With inputs from agencies.)