The International Monetary Fund (IMF) has upgraded India’s economic growth forecast for the financial year 2025–26 to 7.3%, up from its earlier estimate of 6.6%, reflecting strong domestic demand and improving global conditions.
In its latest World Economic Outlook report, the IMF said India continues to remain the fastest-growing major economy in the world. The revised projection highlights India’s resilient economic fundamentals, rising investments, and steady recovery in manufacturing and services sectors.
The IMF noted that robust government spending on infrastructure, strong consumer demand, and improved business confidence are supporting economic momentum. The growth upgrade also comes amid easing inflationary pressures and stable financial markets.
India’s expanding digital economy, growing startup ecosystem, and increasing foreign direct investment (FDI) inflows have further strengthened the country’s growth prospects.
Economists believe the revised IMF forecast will boost investor confidence and reinforce India’s position as a global growth engine at a time when several major economies are facing slowdown concerns.
The government has welcomed the IMF’s upgraded outlook, stating that continued reforms and policy stability will help sustain long-term economic growth.
