Synopsis : The IMF has upgraded India's growth projections to 6.4% for fiscal years 2025 and 2026, citing ongoing economic reforms, strong consumption, and public investment as key drivers of stability.
In its latest World Economic Outlook (WEO) Update, the International Monetary Fund (IMF) has revised India’s GDP growth forecast upward to 6.4% for FY 2025 and 2026, reflecting sustained economic reforms and a supportive investment climate.
India, which grew at 6.5% in 2024, is now expected to maintain a stable and robust economic trajectory, outperforming many emerging and advanced economies. The IMF attributes this consistency to a "reform momentum" that has spurred strong consumption, infrastructure spending, and business-friendly policies.
According to Deniz Igan, Division Chief at the IMF’s Research Department, maintaining this reform push will be vital for India to continue on its growth path. She emphasized areas of focus including job creation, labour reskilling, infrastructure expansion, and trade liberalization.
The IMF also highlighted that for medium-term sustainability, India should invest more in education, land reforms, and the ease of doing business, while improving the social safety net.
This optimistic outlook comes amid global economic adjustments, with the IMF projecting overall world growth at 3% in 2025 and 3.1% in 2026. By comparison, emerging markets are expected to grow at 4.1% in 2025 and 4.0% in 2026, placing India well above the average.
As other global economies like China and the United States see revisions based on changing trade dynamics and policy moves, India stands out as a consistent performer, bolstered by structural reforms and a proactive investment agenda.
Disclaimer : This article is based on data from the IMF’s July 2025 World Economic Outlook and public briefings. Forecasts are subject to change based on evolving global economic conditions and domestic policy shifts.
