IMF raises India growth forecast to 6.4%

Cites 'a more benign external environment'

- PRASANTA SAHU

THE INTERNATIONAL MONETARY Fund (IMF) on Tuesday raised India's gross domestic product (GDP) growth forecast by 20 basis points to 6.4% for FY26, citing a more favourable external environment.

In its July World Economic Outlook Update, the multilateral agency also marginally revised India's FY27 growth forecast upward by 10 basis points to 6.4%.

"In India, growth is projected to be 6.4% in 2025 and 2026, with both numbers revised slightly upward, reflecting a more benign external environment than assumed in the April reference forecast," the IMF said.