IMF Upgrades India’s Economic Growth Forecast to 6.4%

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The International Monetary Fund (IMF) has slightly raised India’s economic growth projections for 2025 and 2026, reflecting a more positive global outlook. The latest World Economic Outlook report forecasts India’s Gross Domestic Product (GDP) to expand by 6.4% in both years, up from the 6.2% estimate issued in April.

According to the IMF, the revision is driven by “a more benign external environment” compared to earlier expectations. The South Asian economy, already one of the fastest-growing major economies, stands to benefit from improved global trade conditions and resilient domestic demand.

In addition to India’s upgraded figures, the IMF also raised its 2025 growth outlook for emerging market and developing economies (EMDEs) to 4.1%, up from the 3.7% projected in April. This boost is largely attributed to a more optimistic assessment of China’s economy, which has shown stronger-than-expected performance in recent quarters.

Globally, the IMF now projects the world economy to grow by 3.0% in 2025, a slight increase from its earlier forecast. Growth for 2026 is expected to rise to 3.1%, suggesting a steady but moderate pace of expansion. These upward revisions reflect easing inflation pressures in several key markets, gradual improvements in supply chain stability, and stronger investment trends.

India’s consistent growth performance continues to draw global attention. The country’s economic momentum has been supported by robust manufacturing activity, sustained consumer spending, and a growing digital economy. However, the IMF has emphasized that challenges remain, including the need to maintain fiscal discipline, address infrastructure gaps, and manage external vulnerabilities linked to commodity prices and geopolitical risks.

The IMF’s outlook comes at a time when India is positioning itself as a major investment destination, with government-led reforms aimed at improving ease of doing business and boosting industrial competitiveness. Analysts suggest that sustained policy stability and continued infrastructure expansion could further enhance the country’s growth trajectory in the coming years.

While global uncertainties persist, the IMF’s upgraded forecast underlines India’s relative economic resilience. With its steady performance and expanding role in global trade, the country remains well-placed to capitalize on shifting global economic trends.

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