FX.co ★ IMF Revises Up India’s GDP Forecast to 6.4% for FY 2026

The International Monetary Fund (IMF) has revised its economic growth projections for India for the fiscal year 2025–26 (FY 2026), upgrading the forecast due to a more favorable global economic climate. On Tuesday, the IMF adjusted its growth expectations for India to 6.4% for FY 2026, marking an increase of 20 basis points from the earlier 6.2% forecast reported in April. Additionally, the forecast for FY 2027 was also increased by 10 basis points, settling at 6.4%. According to the IMF's World Economic Outlook report, this positive adjustment in India’s growth outlook is attributed to a more accommodating external environment than previously anticipated in the April projections. The IMF has maintained the growth estimate for FY 2025 at 6.5%, highlighting the robustness of the Indian economy even amidst global challenges. In other developments, the Finance Ministry, in its Monthly Economic Review for June, characterized the economic outlook for FY26 as "steady as she goes," as reported by The Economic Times. Concurrently, the Reserve Bank of India's Survey of Professional Forecasters has predicted GDP growth rates for FY 2026 to range between 6.2% and 6.5%.