The International Monetary Fund (IMF) has revised India’s GDP growth forecast for FY26 upward by 20 basis points to 6.6%, citing a robust performance in the first half of the fiscal year. The update was released in the IMF’s latest World Economic Outlook report.
The IMF also upgraded India’s FY27 GDP growth projection by 20 basis points to 6.2%, reaffirming the country’s strong macroeconomic fundamentals and resilience amid global challenges.
This revision follows a similar move by the World Bank, which recently raised India’s FY26 growth forecast to 6.5% from 6.3%, while slightly reducing the FY27 projection to 6.3%, noting higher-than-expected tariffs on Indian exports to the United States.
The World Bank also reiterated that India will continue to be the world’s fastest-growing major economy, supported by sustained domestic consumption and reform momentum.
Pierre-Olivier Gourinchas, Economic Counselor and Director of the IMF’s Research Department, said that India’s growth is being driven by private sector dynamism and technology adoption. He emphasized the need for countries to invest in infrastructure and labor force scaling to boost innovation and entrepreneurship.
The Economic Survey has projected India’s FY26 GDP growth in the range of 6.3% to 6.8%, with Chief Economic Advisor V. Anantha Nageswaran noting that growth is likely to remain toward the upper end of this spectrum.
Economists attribute the IMF’s optimistic outlook to strong consumption, public investment, structural reforms, and a favorable external environment, all of which have bolstered India’s economic momentum.
With consistent policy support and resilient domestic demand, India remains firmly positioned as a global growth leader.
