IMF Lifts India FY2026 GDP Growth Forecast to 7.3%

The International Monetary Fund (IMF) raised its forecast for India’s economic growth in fiscal 2026 by 0.7 percentage points to 7.3% in its World Economic Outlook report released on Monday, citing strong momentum.

The agency said the upward revision for fiscal 2026 reflected better-than-expected outturns in the third quarter and strong momentum in the fourth quarter.

The economy grew 8.2% year on year in Q3, the sharpest annual growth rate since the March quarter of 2024.

However, growth is likely to slow to 6.4% in the following two fiscal years as cyclical factors fade.

The upgrade follows a revision earlier this month by India’s National Statistics Office, which raised its estimate for growth to 7.4% in the year ending March 31, above the government’s initial projection of 6.3% to 6.8%.