HomeNewsBusinessEconomyIMF raises India’s FY26 growth forecast to 6.4%, citing improved global outlook
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IMF raises India’s FY26 growth forecast to 6.4%, citing improved global outlook

Revised projection aligns with RBI’s estimate; IMF warns of downside risks from tariffs and geopolitical tensions

July 29, 2025 / 18:31 IST
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India's economy to grow faster in Fy26
India's economy to grow faster in Fy26

The International Monetary Fund (IMF) has revised India’s economic growth forecast for FY26 upward to 6.4 percent, up from 6.2 percent projected in April, citing a more favourable external environment. The updated figures were released in the IMF’s World Economic Outlook on July 29.

The multilateral institution also raised India’s FY27 growth forecast to 6.4 percent, up from 6.3 percent previously. “In India, growth is projected to be 6.4 percent in 2025 and 2026, with both numbers revised slightly upward, reflecting a more benign external environment than assumed in the April reference forecast,” the Washington-based lender noted.

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The upward revision brings the IMF forecast in closer alignment with the Reserve Bank of India’s projection of 6.5 percent growth for the upcoming fiscal, and comes just days after the Asian Development Bank (ADB) lowered its forecast to 6.5 percent from 6.7 percent in its latest outlook.