By: The Trek News Desk
The International Monetary Fund (IMF) has revised India’s economic growth projection for the current fiscal year 2025-26 upward to 7.3%, up from its earlier estimate of 6.6%, signalling strong economic momentum in the country.
In its January 2026 update of the World Economic Outlook (WEO) released on Monday (January 19, 2026), the IMF attributed the upward revision to better-than-expected performance in the third quarter and robust activity in the fourth quarter of the fiscal year.
The report stated, “India’s growth for 2025-26 has been revised up by 0.7 percentage points to 7.3%, reflecting stronger-than-expected outcomes in the third quarter and solid momentum in the fourth quarter.” However, the IMF cautioned that growth is expected to moderate to around 6.4% in 2026 and 2027 as cyclical and temporary factors gradually ease.
The IMF’s revised projection closely aligns with the Government of India’s official forecast of 7.4% for the year, highlighting the resilience of the Indian economy despite global uncertainties.
On the global front, the IMF said the world economy is expected to remain “resilient,” with growth forecast at 3.3% in 2026 and 3.2% in 2027, nearly matching the 3.3% estimated for 2025.
The report noted that while shifting trade policies continue to pose challenges for global growth, factors such as rising investment in technology, including artificial intelligence (AI), along with supportive fiscal and monetary policies and the adaptability of the private sector, are offsetting these headwinds. The effect is particularly pronounced in North America and Asia.
On inflation, the IMF observed that India’s price growth, which eased in 2025 due to soft food prices, is expected to return to near-target levels. The Reserve Bank of India’s medium-term inflation target remains 4%.
Source: News Agencies
