IMF projects India’s GDP growth at 7.3 pc for FY26

The International Monetary Fund (IMF) has raised India’s growth estimate for 2025-26 by 0.7 percentage points to 7.3%, citing stronger-than-expected economic momentum, as per its January 2026 World Economic Outlook Update. The IMF also revised growth estimate upward by 20 bps to 6.4% for 2026-27. The growth upgrade for India reinforces the country’s position as the fastest-growing major economy amid a steady but uneven global recovery. It reflects robust domestic demand, resilient services activity and sustained public capital expenditure, which helped offset global headwinds from trade uncertainty and slowing external demand. This pace remains well above the global average and significantly stronger than that of most emerging market peers. The IMF noted that India continues to benefit from macroeconomic stability, improving infrastructure and reforms that support investment and productivity over the medium term, as per a report.

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