By Admin 
IMF on India’s GDP: In view of the strong performance of the Indian economy, the International Monetary Fund (IMF) has increased India’s economic growth rate estimate for the financial year 2025-26 to 7.3 percent, which is 0.7 percentage points higher than the estimate released in October. This Washington-based multilateral organization said in its ‘World Economic Outlook’ report that this revision has been made due to better than expected performance in the third quarter and strong momentum in the fourth quarter. Additionally, IMF has also increased the estimate of India’s GDP growth rate for the financial year 2026-27 to 6.4 percent, which was earlier 6.2 percent.
Strong performance despite tariffs
According to IMF, however, India’s growth rate may see some slowdown in the coming years. The growth rate is estimated to be 6.4 percent in the financial years 2026-27 and 2027-28, as the impact of cyclical and temporary factors will gradually reduce. According to government data, India’s GDP growth rate in the first half (April-September) of the financial year 2025-26 stood at eight percent, while it was recorded at 8.2 percent in the July-September quarter.
According to the first advance estimate of the Statistics Ministry, the Indian economy is likely to grow at the rate of 7.4 percent in the current financial year, whereas this rate was 6.5 percent in the financial year 2024-25.
Relief on inflation front
On the inflation front, the IMF said that due to softening of food prices, a significant decline in inflation has been recorded in 2025 and it is expected to return closer to the target in the future. The Reserve Bank of India has a target of keeping retail inflation within the range of four percent with a variation of two percent. Talking about the global scenario, the IMF has estimated that global economic growth will be 3.3 percent in 2026 and 3.2 percent in 2027, while in emerging and developing economies this rate is likely to be slightly more than four percent.
The 2025 growth forecast for China has been increased by 0.2 percentage points to five percent, while global inflation is expected to decline from 4.1 percent in 2025 to 3.8 percent in 2026 and 3.4 percent in 2027.
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