IMF upgrades India's FY26 & FY27 growth forecast to 6.4% in line with global growth uptick
The IMF's World Economic Outlook (WEO) July update released on July 29 upgraded its global growth forecast to 3% for 2025 and 3.1% in 2026, 0.2 percentage and 0.1 percentage points higher than what had been predicted in the April 2025 edition of the WEO.
'This reflects stronger-than-expected front-loading in anticipation of higher tariffs, lower average effective U.S. tariff rates than announced in April, an improvement in financial conditions, including due to a weaker U.S. dollar, and fiscal expansion in some major jurisdictions,' the report said.
However, the report also noted that, although the July prediction for global growth is higher than the one made in April, it is still lower than the 3.3% growth seen in 2024 and the pre-COVID-19 pandemic historical average of 3.7%.
'In India, growth is projected to be 6.4% in 2025 and 2026, with both numbers revised slightly upward, reflecting a more benign external environment than assumed in the April reference forecast,' the report said.
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