The International Monetary Fund raised India’s GDP growth forecast for FY 2025–26 to 7.3% in January 2026. The revision, announced in the World Economic Outlook, reflects strong domestic demand, easing inflation, and supportive macroeconomic policies.

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• IMF upgraded India’s FY 2025–26 growth forecast to 7.3%, reflecting sustained economic momentum despite global slowdown risks and financial market uncertainty
• The revision is based on strong fourth-quarter performance in the current fiscal year and broad-based expansion across services, consumption, and industrial output
• Resilient domestic demand, supported by rising incomes and relatively stable employment conditions, remains the key driver of India’s near-term economic growth
• Investment activity continues steadily due to high public capital expenditure and gradually improving private sector confidence across major industries
• Easing inflation pressures, especially from softer food prices, have improved macroeconomic stability and policy flexibility for authorities
•  IMF highlighted supportive fiscal management and a cautious but accommodative monetary stance as strengthening India’s growth outlook
• Despite the upgrade, growth is expected to moderate to around 6.4% in FY 2026–27 as base effects normalize
• India remains among the fastest-growing major economies and a key contributor to global and emerging market growth