IMF’s ‘World Economic Outlook’ Report Raises India’s FY26 GDP Growth Projection to 6.6% Amid Strong Domestic Demand.

In October 2025, the International Monetary Fund (IMF) published its latest World Economic Outlook (WEO) report titled ‘Global Economy in Flux, Prospects Remain Dim’, outlining revised growth and inflation trends for both India and the global economy.

      - The IMF increased India’s GDP growth projection for FY26 to 6.6%, reflecting strong domestic demand and investment recovery. The earlier forecast stood at 6.4%.

      - For FY27, India’s growth is projected at 6.2%, slightly lower than previous estimates, indicating a gradual normalization of the rapid expansion seen in FY26.

      - During the first quarter of FY26, India’s economy expanded 7.8%, the fastest in over a year, with the IMF expecting around 7% growth in Q2, supported by manufacturing and services resilience.

Main Point :-   (i) India’s inflation estimate for FY26 was cut to 2.8% from 4.2% earlier, suggesting improved price control. For FY27, inflation is expected at 4%, slightly below the prior 4.1% forecast.

      (ii) Globally, the IMF expects economic growth to slow from 3.3% in 2024 to 3.2% in 2025, while maintaining the 2026 forecast at 3.1%, highlighting persistent challenges in advanced economies.

(iii) From 2027 to 2030, global growth is expected to average 3.2% annually, with headline inflation easing to 4.2% in 2025 and 3.7% in 2026, reflecting a gradual recovery in global economic stability.
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