IMF Raises India’s FY26 Growth Forecast to 6.4%
Why in the news
The IMF improved its outlook for India and the world, citing easing inflation and resilient demand.
Key facts
- India: FY26 6.4% (up 20 bps), FY27 6.4% (up 10 bps).
- Why: benign external environment, lower food prices, suspended higher tariffs, reform momentum.
- Advice: create jobs, reskill farm labour, build infrastructure, reform education, land laws and safety nets.
- Global: 3% (2025), 3.1% (2026); China 4.8%; EMDEs 4.1% and 4%.
- Gourinchas: export front-loading, easing conditions, US dollar down about 8%.
| Agency | FY26 forecast (%) |
|---|---|
| World Bank | 6.6 |
| S&P Global | 6.5 |
| IMF / UBS | 6.4 |
| ADB / India Ratings | 6.3 |
| OECD | 6.0 |
Exam angle
- Report: WEO July 2025.