IMF raises India’s FY26 GDP growth forecast by 20 bps to 6.6%

Says strong first-quarter growth offsets US rate hike, revises global projection for 2025 upwards by 20 bps

- RUCHIKA CHITRAVANSHI

‘The International Monetary Fund (IMF) on Tuesday raised India’s gross domestic product (GDP) growth forecast for 2025-26 (FY26) by 20 basis points (bps) to 6.6 per cent, citing a “strong first quarter” that more than offset the impact of the US rate hike, in its latest World Economic Outlook report. The IMF also revised the growth forecast for 2026-27 (FY27) upwards by 20 bpsto 6.2 percent.

Last week, the World Bank increased India’s FY26 GDP forecast to 6.5 per cent from 6.3 per cent in June, while lowering the FY27 forecast by 20 bps to 6.3 per cent, citing higher-than-expected tariffs on India’s exports to the US.

The World Bankadded that India is expected to remain the world’s fastest-growing major economy, supported by continued strength in consumption growth.