IMF raises India's FY26 growth forecast to 6.6%
Good news for India's economy: the International Monetary Fund (IMF) now expects the country to grow by 6.6% in fiscal year 2025, up from its earlier prediction of 6.4%.
This boost comes after India posted a strong first quarter—even as US tariffs on Indian imports went up since July.
The update was part of the IMF's latest World Economic Outlook.
Inflation to remain low
India's economy kicked off FY26 with a speedy 7.8% growth in Q1, its best in over a year.
Inflation is also cooling off—IMF now sees it at just 2.8% for FY26, compared to an earlier estimate of 4.2%, thanks to retail inflation hitting an eight-year low last August.
Other big players like the World Bank and RBI are just as optimistic, raising their own forecasts to around 6.5-6.8%.
All signs point to India keeping its economic momentum going strong into next year.