IMF Lifts India’s FY26 Growth Forecast to 6.6%, Keeps It as World’s Fastest-Growing Major Economy

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INDIA: The International Monetary Fund (IMF) revised India’s economic growth forecast for FY26 upward to 6.6%, from its earlier estimate of 6.4%, citing robust first-quarter performance that more than offset the effects of higher U.S. tariffs on Indian exports. However, in its latest World Economic Outlook (WEO) report, the IMF trimmed India’s FY27 growth projection to 6.2%, down from the 6.4% forecast released in July.

Despite the upward revision, India’s FY26 growth outlook remains 0.2 percentage points below the IMF’s pre-tariff forecast issued in October 2024. Nevertheless, the Washington-based institution expects India to remain the fastest-growing major economy among advanced, emerging, and developing nations over both the current and next fiscal years.

Source: IMF