Indian Economy to Grow at 7.3% this Year, says IMF

The Indian economy is expected to steam ahead and grow at 7.3% this year (2025-26) and continue to grow at 6.4% in 2026-27 according to the latest forecast by the International Monetary Fund (IMF). In its World Economic Outlook (WEO) update released on Monday, the IMF raised growth forecasts for both years, raising them by 0.7 percentage point for 2025-26 and by 0.2 percentage point for 2026-27 compared to its October forecast.

These projections mark out India as one of the fastest growing economies in the world compared to its peer economies.

Earlier this month, the World Bank had issued similar forecasts in its Global Economic Prospects report. The WB had noted that, “Growth in India is projected to slow to 6.5 percent in FY2026/27. This assumes that the 50 percent import tariffs by the United States remain in place throughout the forecast horizon.” The report went on to say that, “Even so, India is expected to maintain the fastest growth rate among the world’s largest economies.”

The Bank added that, “Despite higher tariffs on certain exports to the United States—which accounts for about 12 percent of India’s merchandise exports—the growth forecast has remained unchanged relative to June (2025) projections, primarily because adverse impacts of higher tariffs will be offset by stronger momentum in domestic demand and more resilient exports than previously anticipated…Growth is set to inch up to 6.6 percent in FY2027/28, underpinned by robust services activity, as well as a recovery in exports and a pickup in investment.”