The International Monetary Fund (IMF) has revised India’s economic growth forecast for FY2025-26 upward to 6.4%, from its previous estimate of 6.2% in April. This 20 basis point increase, announced in the IMF’s latest World Economic Outlook (WEO) update, reflects a more favorable external environment and easing inflation.
The report also upgraded India’s FY2026-27 GDP growth estimate by 10 basis points to 6.4%, signaling sustained momentum over the medium term.
“In India, growth is projected to be 6.4 percent in [FY 2026 and FY 2027], with both numbers revised slightly upward, reflecting a more benign external environment than assumed in the April reference forecast,” the IMF stated.
Responding to questions on the rationale behind the revision, Deniz Igan, Division Chief at the IMF, cited the suspension of higher tariffs and a drop in food prices that contributed to lower inflation. Additionally, she emphasized the role of structural reforms, consistent consumption growth, and continued public investment in maintaining stable economic expansion.
These factors collectively underpin India’s resilient economic outlook and reinforce investor confidence moving forward.