There has again been positive news at the international level regarding India’s economy. The International Monetary Fund (IMF) has increased India’s GDP growth forecast for the current financial year to 6.6%, whereas earlier it was 6.4%. IMF has taken this decision in its report in view of India’s tremendous economic performance in the first quarter, in which the GDP growth rate was 7.8% in the April-June quarter, which is the highest in the last five quarters.
According to IMF’s latest ‘World Economic Outlook Report’, although the GDP growth forecast for 2026-27 has been slightly reduced to 6.2%, it still puts India at the forefront among emerging and developing economies. The report clearly notes that growth has accelerated compared to the July 2025 update, and India’s strong economic actions have outweighed pressures such as US tariff hikes.
In the same context of economic strength, the World Bank had recently increased India’s GDP growth forecast for 2025 from 6.3% to 6.5%. Both international organizations have acknowledged that India will remain the world’s fastest growing major economy. In its April 2025 report, the IMF had projected GDP growth to be 6.2% for 2025 and 6.3% for 2026, but the latest figures confirm India’s growing economic strength.
On the other hand, the IMF has slightly reduced its global growth rate forecast for the future. It is projected to decline from 3.3% in 2024 to 3.2% in 2025 and 3.1% in 2026. For emerging markets and developing countries, this rate is expected to be 4.2% in 2025 and 4% in 2026 respectively.
In this entire scenario, India’s performance is proving to be the best despite the global recession and business pressures. Both the IMF and the World Bank believe that if India maintains its economic reforms and policy stability, this pace will not slow down in the coming years.