IMF Raises India's FY26 GDP Growth Forecast to 7.3%, Projects Moderation in Following Years

The International Monetary Fund (IMF) has raised India's GDP growth forecast for fiscal year 2025-26 to 7.3%, up 0.7 percentage points from its October estimate, citing stronger-than-expected third-quarter performance and sustained momentum. Growth is projected to moderate to 6.4% in 2026 and 2027 as cyclical factors wane, yet India is expected to remain the fastest-growing major economy globally. Inflation is anticipated to return near target levels by 2025, driven by subdued food prices. Globally, growth is forecast at 3.3% in 2026, supported by AI-driven investments, though risks from trade tensions and geopolitical uncertainties persist.