The IMF has upgraded India’s GDP growth forecast for FY 2025–26 to 7.3%, citing strong quarterly performance and easing inflation. India continues to lead global growth despite tariffs and economic uncertainty.
IMF Raises India’s Growth Outlook
New Delhi: Reflecting India's robust and resilient economic performance, the International Monetary Fund (IMF) has increased the projected economic growth rate for financial year 2025–26. The IMF predicts India's GDP to expand by 7.3 percent now, 0.7 percentage points greater than the estimate released in October.
Additionally, the IMF has somewhat increased its growth projection for 2026–27 to 6.4 percent from its earlier estimate of 6.2 percent. These modifications point out India as among the fastest-growing significant economies in the world.
Although India's growth prospects remain high, the IMF pointed out that some cooling might happen in the following years. Growth is expected to be around 6.4 percent for fiscal years 2026–27 and 2027–28 since the effect of temporary and cyclical variables slowly diminishes. India has kept up astounding statistics despite problems including unclear international conditions and tariffs on international trade.
Government data reveals that during the first six months of FY 2025–26 (April–September) India had an 8 percent GDP growth; the July–September quarter clocked 8.2 percent, suggesting strong domestic demand and investment activity.
IMF Revises India’s Growth Forecast Upward
In first advance estimates, India's Ministry of Statistics has predicted 7.4 percent growth for the Indian economy in the current financial year—a remarkable rise over the 6.5 percent growth reported in FY 2024–25.
On the issue of inflation, the IMF provided promising news. It claimed that a sharp fall in inflation had resulted from the easing of food prices in 2025 and that inflation is forecast to approach its target level during the following year. With a tolerance band of plus or minus 2 percent, the Reserve Bank of India (RBI) seeks to maintain retail inflation near 4 percent.
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Beyond India, the IMF estimated 3.3 percent global economic growth in 2026 and 3.2 percent in 2027. Emerging and growing countries are projected to expand at around 4%. The projected growth for China in 2025 has been raised 0.2 percentage points to 5 percent. Reflecting better price stability throughout, global inflation is predicted to fall from 4.1% in 2025 to 3.8% in 2026 and 3.4% in 2027.
