IMF Raises India's 2025-26 Growth Forecast to 7.3%, Projects Moderation in Following Years

The International Monetary Fund (IMF) has raised India's economic growth forecast for fiscal year 2025-26 to 7.3%, up 0.7 percentage points from its previous estimate, citing stronger-than-expected performance in the second half of 2025. Growth is expected to moderate to 6.4% in 2026 and 2027 as cyclical and temporary factors ease. India remains the fastest-growing major economy, outperforming global and regional peers. Inflation is projected to return near target levels by 2025, supported by subdued food prices. Globally, growth is forecast at 3.3% in 2026, aided by technology investments, especially in AI, despite ongoing trade tensions and geopolitical uncertainties.