The International Monetary Fund (IMF) raises India's FY26 GDP growth forecast by 20 basis points to 6.6%
- IBEF
- October 15, 2025
The International Monetary Fund (IMF) has revised India’s gross domestic product (GDP) growth forecast for FY26 upward by 20 basis points to 6.6%, citing a strong H1 performance, according to its latest World Economic Outlook report. The IMF also raised the growth forecast for FY27 by 20 basis points to 6.2%. Last week, the World Bank similarly upgraded India’s FY26 GDP forecast to 6.5% from 6.3% while lowering the FY27 projection to 6.3%, noting higher-than-expected tariffs on India’s exports to the United States (US). The World Bank added that India is expected to remain the world’s fastest-growing major economy, supported by continued strength in consumption growth.
Economic Counselor and Director of the Research Department at the IMF, Mr. Pierre-Olivier Gourinchas, highlighted that growth is being driven by the private sector and the adoption of technologies developed elsewhere. He emphasized the need for countries to scale their labor force and invest in infrastructure to foster private sector innovation and entrepreneurship. Addressing the forecast, the Economic Survey projected India’s GDP growth between 6.3% and 6.8% for FY26, with Chief Economic Advisor Mr. V. Anantha Nageswaran noting that growth is tending towards the upper end of this range. The upgrade reflects robust consumption, reform momentum, public investment, and a benign external environment.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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