IMF Raises India’s Growth Forecast to 7.3 Percent for the Current Fiscal Year

Kathmandu — The International Monetary Fund (IMF) has revised upward its growth forecast for India for the current fiscal year (April 2025–March 2026), projecting that the country’s gross domestic product (GDP) will expand by 7.3 percent.

Previously, the IMF had estimated India’s economic growth at 6.6 percent for the same period. The revised projection is only slightly lower than the 7.4 percent growth estimate put forward by the Indian government.

According to the IMF’s latest report, the upward revision reflects stronger-than-expected economic performance in the third quarter (October–December 2025), along with the continuation of solid growth momentum in the fourth quarter (January–March 2026). The fund noted that resilient domestic demand and sustained activity across key sectors helped support overall economic expansion.

However, the IMF has adopted a more cautious outlook beyond the current fiscal year. As cyclical and temporary factors gradually weaken, the report projects that India’s economic growth will moderate to around 6.4 percent in 2026 and 2027. The IMF pointed to evolving global economic conditions and the fading impact of short-term growth drivers as potential constraints in the medium term.

Overall, while India’s economy is expected to remain one of the fastest-growing major economies in the world in the near term, the IMF emphasized the importance of maintaining reform momentum and investment to sustain higher growth over the longer run.