IMF Raises India’s Growth Forecast to 6.4% for 2025 and 2026

The International Monetary Fund (IMF) has revised its forecast for India’s economic growth to 6.4 percent for both 2025 and 2026. Earlier in its April 2025 World Economic Outlook, IMF had projected India’s GDP growth at 6.2 percent for 2025 and 6.3 percent for 2026.

Reaffirming India’s position as the world’s fastest-growing major economy, IMF attributed the upward revision to a more benign external environment than anticipated in its April forecast. For India, projections are based on the calendar year, with the agency



noting that India’s growth projections are 6.7 percent for 2025 and 6.4 percent for 2026 based on financial year data.

     

The IMF has also modestly raised its global growth outlook to 3.0 percent in 2025 and 3.1 percent in 2026, citing lower-than-expected impact from tariffs, a weaker US dollar, and improved financial conditions. China is forecast to grow at 4.8 percent in 2025 and 4.2 percent in 2026, while the US is expected to expand 1.9 percent in 2025 and 2.0 percent in 2026.