IMF raises India's growth forecast to 6.6% for FY26
The IMF just raised its outlook for India's economy, projecting 6.6% growth in 2025-26—up from their earlier 6.4%.
This boost comes after a surprisingly strong first quarter, which helped offset the hit from higher US tariffs on exports.
With this upgrade, India is set to outpace China (expected at 4.8%) and lead major economies, even as global growth slows to around 3.2%.
Strong Q1 FY26 performance and government growth expectations
India's Q1 FY26 saw a solid 7.8% jump, fueled by strong consumer spending and recent tax reductions.
The government expects growth between 6.3% and 6.8% for the year overall.
Key factors like manufacturing expansion and private investment have helped absorb tough US tariffs on Indian goods.
Global uncertainties and potential challenges ahead
The IMF points out that steady tax collections and healthy credit growth are helping India weather global uncertainty better than most countries right now.
Still, they caution that ongoing trade tensions or weaker global demand could slow things down a bit next year—with growth expected to moderate to about 6.2% in FY27—but for now, India's economic resilience stands out on the world stage.