In its July 2025 World Economic Outlook update, the International Monetary Fund (IMF) upgraded India’s GDP growth forecast to 6.4% for both 2025 and 2026.

The revision reflects stronger macroeconomic fundamentals and a more favorable global environment, reaffirming India's status as the world’s fastest-growing major economy.

Key Points:

• The IMF has revised India’s GDP growth forecast to 6.4% for both 2025 and 2026, up from earlier projections of 6.2% and 6.3% respectively.
• The forecast upgrade is attributed to improved global financial conditions, easing trade barriers, and a more stable external economic environment.
• India continues to hold its position as the fastest-growing major economy in the world, surpassing other emerging and developed markets.
• The IMF also raised global growth projections to 3.0% for 2025 and 3.1% for 2026, reflecting optimism for broader economic recovery.
• The revised outlook brings IMF projections closer to the Reserve Bank of India’s estimate of 6.5% growth, narrowing the gap between international and domestic forecasts.