The International Monetary Fund (IMF) is considering upgrading India’s growth forecast following the country’s better-than-expected economic expansion in the latest quarter. India’s robust performance positions it as a significant driver of global growth, according to IMF Communications Department Director Julie Kozack. The IMF’s previous assessment projected India’s growth for the 2025–26 fiscal year at 6.6 percent, with strong domestic consumption playing a vital role in this estimate.
Kozack highlighted that India’s third-quarter growth surpassed expectations, leading to increased confidence in the country’s economic performance. This positive development has raised the possibility of an upward revision in the IMF’s upcoming forecast update. The IMF is set to release its January update of the World Economic Outlook (WEO) shortly, which will include revised growth projections for India and other major economies.
While the specific revised growth figure for India was not disclosed ahead of the update, Kozack emphasized the Fund’s optimistic view of India’s economic trajectory. Despite the challenging global economic environment, the IMF’s positive assessment of India’s growth underscores the country’s resilience amid uncertainties. Economists view the IMF’s signal as significant, especially given the prevailing fragile global backdrop.
Anit Mukherjee, Senior Fellow at ORF America, noted that India’s strong performance is noteworthy considering the current external challenges, including policy and trade-related risks. He highlighted India’s resilience and substantial contribution to global growth despite the prevailing uncertainties. Mukherjee attributed India’s economic strength to factors such as robust domestic consumption and prudent macroeconomic policies.
Mukherjee also pointed out the positive impact of policy measures, such as the reduction in the Goods and Services Tax (GST) before the festive season, on India’s economic growth. He emphasized the importance of macroeconomic discipline, citing moderate inflation and fiscal consolidation as key factors supporting India’s economic performance. The IMF’s potential upward revision of India’s growth forecast amidst the current global economic climate is seen as a positive development for the Indian economy.
