FX.co ★ IMF Lifts India FY2026 GDP Growth Forecast to 7.3%

In its latest World Economic Outlook report published on Monday, the International Monetary Fund (IMF) has adjusted its projection for India's economic growth in the fiscal year 2026, increasing it by 0.7 percentage points to a robust 7.3%. This revision is attributed to stronger than anticipated performance in the third quarter, coupled with solid momentum observed in the fourth quarter. Notably, during the third quarter, the Indian economy expanded by 8.2% year-on-year, marking the highest annual growth rate since the March quarter of 2024. Despite this significant growth, it is anticipated that the rate will decelerate to 6.4% over the subsequent two fiscal years as cyclic economic factors begin to ease. This upgrade follows an earlier reassessment by India's National Statistics Office, which adjusted its growth estimate to 7.4% for the fiscal year ending March 31, surpassing the government's original forecast range of 6.3% to 6.8%.