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India’s economy will grow at 6.6% in fiscal year 2026. International Monetary Fund i.e. IMF on Tuesday (October 14) has increased the estimate of India’s Gross Domestic Product i.e. GDP growth. Earlier, IMF had estimated the growth rate in FY26 at 6.4%.
The IMF said in its October World Economic Outlook report that India’s economy will grow faster than previously estimated in the financial year 2025-26. At the same time, IMF has slightly reduced the estimate for FY27 to 6.2%.
World Bank also increased India’s GDP growth estimate
According to the IMF, India’s economy recorded a robust growth of 7.8% in the first quarter of FY26, the fastest in the last one year. An increase of about 7% is expected in the second quarter also. This strong performance was due to the rise in domestic demand, growth in service sector exports and good performance at the beginning of the year. IMF said that these positive trends are also outweighing the impact of tariffs imposed by America on India.
Before IMF, World Bank and Reserve Bank of India (RBI) also increased India’s GDP growth estimates. The World Bank last week raised its forecast for FY26 to 6.5% from 6.3%, citing strong consumption and GST reforms. At the same time, RBI also increased its estimate from 6.5% to 6.8%.
IMF also reduced inflation forecast for India
IMF has also reduced the inflation estimate for India. Inflation is expected to be 2.8% in FY26, much lower than the 4.2% estimated in April. For FY27 also it has been reduced from 4.1% to 4%. Retail inflation in India fell to an eight-year low of 1.54% in September from 2.07% in August.
India is the fastest growing economy in the world
The IMF said that inflation in countries like India, Malaysia, Philippines and Thailand was lower than expected. Despite uncertainties in global trade and policy tightening, India remains the world’s fastest growing major economy. It is a matter of pride for India that it is continuously leaving its counterpart countries behind.
Experts believe that India’s economy is being supported by strong domestic demand, increase in exports and GST reforms. However, global challenges such as trade barriers and changes in interest rates need to be monitored. Still, India’s economic future looks bright and this is a positive message for the country.
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Retail inflation lowest in 8 years: Decreased to 1.54% in September, effect of cheaper food items; was 2.07% in August
Retail inflation has come down to 1.54%, the lowest level in almost 8 years in September. Earlier in June 2017 also it was this much. The reason for this is the fall in the prices of some food items. Whereas in August, retail inflation was 2.07%. Read the full news…
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