The International Monetary Fund (IMF) on Monday increased India’s GDP growth forecast by 0.7% to 7.3 percent for the financial year 2025-26. Earlier in October, IMF had estimated it to be 6.6%. IMF has said in its World Economic Outlook report that the growth rate in India has been much better than expected. Especially in the third and fourth quarters of the financial year 2025-26, the Indian economy has shown strong hold, the effect of which will be visible on the figures for the entire year. Estimates also increased for 2026-27 IMF has increased the growth estimates not only for this year but also for the next financial year. India’s GDP growth forecast for fiscal year 2026-27, starting April 1, 2026, has been raised to 6.4 percent from 6.2 percent. However, the organization also says that growth may again stabilize around 6.4% by 2027-28, as the impact of ‘temporary factors’ which will have an impact for some time will subside by then. Strength is also visible in government figures. According to the ‘First Advance Estimate’ of the Statistics Ministry of India, the Indian economy may grow at the rate of 7.4% in the current financial year. In the last financial year 2024-25, this rate was 6.5%. India’s growth rate in the July-September 2025 quarter was recorded at 8.2%, while the average growth in the first half of April-September was 8%. This shows that the growth in manufacturing and service sectors continues. There will also be relief from inflation. IMF has expressed a positive attitude regarding inflation. According to the report, inflation rate will reduce due to reduction in prices of food items in 2025. In India, the Reserve Bank (RBI) has set a target of keeping the retail inflation i.e. Consumer Price Index (CPI) at 4%. There is a margin of 2% up or down. The IMF estimates that the inflation rate will remain within this target range in the coming time. India’s dominance in emerging markets: According to IMF, the average growth in emerging markets and developing countries will remain above 4%. Among these, India remains the fastest growing major economy. This growth of India is due to increase in domestic demand and government expenditure.
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IMF increased India’s GDP growth estimate to 7.3%: Said- India’s growth rate is better than expected, economy will remain bullish next year also
