IMF raises India growth estimate

Revises up FY26 outlook by 70 bps to 7.3% and FY27 by 20 bps to 6.4%

- FE BUREAU

THE INTERNATIONAL MONETARY Fund (IMF) on Monday raised India’s growth estimate for 2025-26 by 0.7 percentage points to 7.3%, citing stronger-than-expected economic momentum.

In its January 2026 World Economic Outlook Update, the IMF also revised growth estimate upward by 20 basis points to 6.4% for 2026-27.

Recently, the World Bank revised up India’s growth projection by 90 bps to 7.2% for FY26, citing robust domestic demand, strong private consumption, tax reforms and improvements in real household earnings in rural areas. It, however, retained 6.5% projection for FY27.