The International Monetary Fund has revised India’s economic growth forecast upwards to 6.4% for both 2025 and 2026, citing a more favourable global environment.read more
The International Monetary Fund (IMF) on Tuesday marginally revised upwards its economic growth projections for India for the years 2025 and 2026.
In its latest World Economic Outlook report, the IMF forecast India’s gross domestic product (GDP) to grow at 6.4% in both 2025 and 2026. This marks a slight improvement from its previous estimate of 6.2% issued in April.
In its report, the IMF stated that the change to India’s GDP prediction reflected “a more benign external environment than assumed in the April reference forecast.”
At current rates, India remains the world’s fastest-growing major economy.
According to the IMF, the upward revision for India reflects a more favourable external environment compared to what was assumed in the April forecast.
The IMF noted that global economic conditions have improved modestly, benefiting several economies, including those in South Asia.
In addition to India’s forecast, the IMF also raised its projection for overall economic growth in emerging market and developing economies. It now expects these economies to grow by 4.1% in 2025, compared to the earlier estimate of 3.7%.
This change is largely attributed to a more positive outlook on China’s economic performance.
On a global scale, the IMF adjusted its growth forecast slightly upwards as well. It now anticipates global GDP to increase by 3.0% in 2025 and by 3.1% in 2026, citing a broadly improving international economic climate.