US EditionIMF Raises India’s 2025 Growth Forecast to 7.3% Amid Global Trade Tensions
The International Monetary Fund raised India’s fiscal year 2025-26 GDP growth forecast to 7.3% due to strong Q3 and Q4 performance and supportive economic conditions.
- On January 19, 2026, the International Monetary Fund revised India's FY 2025-26 GDP growth to 7.3% from 6.6% in its January 2026 World Economic Outlook update.
- Headwinds from shifting trade policies are offset by tailwinds from surging technology and AI investment and fiscal and monetary support, the IMF said.
- The WEO found global growth to remain resilient at 3.3% in 2026, with investment gains in North America and Asia reinforcing regional drivers.
- Policy makers face a small benchmark gap as the IMF's 7.3% estimate trails the government of India's 7.4% projection, while inflation's return near target supports domestic demand.
- Inflation is expected to return near target after a marked decline in 2025 driven by subdued food prices, while technology-related investment and accommodative financial conditions sustain India’s momentum.
15 Articles
15 Articles
IMF raises India’s 2025 growth forecast to 7.3% amid global trade tensions
The International Monetary Fund has raised India’s economic growth forecast for 2025, citing stronger corporate earnings and sustained economic momentum, while noting that the global economy has absorbed recent tariff shocks.
International Monetary Fund raises India's FY26 growth forecast to 7.3% despite global tariff uncertainty
Despite global uncertainties and tariff tensions, the International Monetary Fund (IMF) has raised its growth forecast for India’s economy in fiscal year 2026 by 0.7 percentage points to 7.3 per cent. The IMF estimates India's economy to grow by 7.3 per cent in 2025, followed by 6.4 per cent in both 2026 and 2027, significantly outperforming global and advanced economy averages. "In India, growth is revised upward by 0.7 percentage points to 7.3…
IMF upped India’s GDP growth to 7.3% for FY26
Domestic factors such as healthy agricultural prospects, continued impact of GST rationalisation, benign inflation, healthy balance sheets of corporates and financial institutions and congenial monetary and financial conditions should continue to support economic activity
Coverage Details
Bias Distribution
- 66% of the sources lean Right
Factuality
To view factuality data please Upgrade to Premium
