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IMF Lifts India’s FY26 Growth Forecast to 7.3%

21 January 20261 min read
ECONOMYIMF Lifts India’sFY26 GrowthForecast to 7.3%21 January 2026safalsetu.com

Why in the news

The IMF upgraded India’s growth estimate for FY 2025-26, citing a strong third quarter and fourth-quarter momentum.

Key facts

ItemFigure
India FY 2025-26 (IMF)7.3%, from 6.6%
India 2026 and 20276.4%
Government estimate7.4%
World 2026 / 20273.3% / 3.2%

Drivers

  • Headwind: restrictive, shifting trade policy.
  • Tailwinds: AI-led technology investment, supportive policy, easy financial conditions, adaptable private sector.

Exam angle

  • Upgrade: 6.6% to 7.3% for FY 2025-26.
  • The IMF figure sits slightly under the government’s 7.4% estimate.
  • Global outlook is called resilient and broadly unchanged.

Test yourself

1. What FY 2025-26 growth projection for India did the IMF announce in January 2026?

The IMF raised it to 7.3% from 6.6%.

2. To what level does the IMF expect India's growth to moderate in 2026 and 2027?

Growth is expected to moderate to 6.4%.

3. What global growth did the IMF project for 2026 in this outlook?

Global growth for 2026 is 3.3%; 2027 is 3.2%.