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IMF revises slightly upward India’s economic growth forecast to 6.4% for 2025

30 Jul 2025 Evaluate

Citing improved external environment, the International Monetary Fund (IMF) in its July World Economic Outlook Update has revised slightly upward India’s economic growth forecast to 6.4 percent for 2025. Earlier in its April 2025 World Economic Outlook, IMF had projected India’s Gross Domestic Product (GDP) growth at 6.2 percent for 2025. It said that the revision in growth projection reflects a more benign external environment than assumed in the April reference forecast.

Similarly, the agency has revised upward the country’s economic growth forecast at 6.4 percent for 2026 from earlier forecast of 6.3 percent. It noted that the country’s growth projections for 2026 based on financial year data. Based on the IMF projections, India is expected to record the highest growth rate among advanced economies and emerging markets and developing ones over the current and next fiscal year.

The IMF has also modestly raised its global growth outlook to 3.0 percent in 2025 and 3.1 percent in 2026, citing lower-than-expected impact from tariffs, a weaker US dollar, and improved financial conditions. China is forecast to grow at 4.8 percent in 2025 and 4.2 percent in 2026, while the US is expected to expand 1.9 percent in 2025 and 2.0 percent in 2026.

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