IMF Raises India’s Economic Growth Forecast to 7.3% in FY26In January 2026, the International Mone...

Rojgar4u Team January 21, 2026

IMF Raises India’s Economic Growth Forecast to 7.3% in FY26In January 2026, the International Monetary Fund (IMF) released its World Economic Outlook (WEO) titled, “Global Economy: Steady amid Divergent Forces”, in which it has upwardly revised India’s growth outlook for Financial Year 2025-26 (FY26) to 7.3%, from 6.6% in October 2025.

What? World Economic Outlook released
Title: Global Economy: Steady amid Divergent Forces
Released by: IMF
India Growth: 7.3% – FY26; 6.4% – FY27 & FY28
Global Growth: 3.3% – CY25; 3.2% CY26 & CY 27
Global Inflation: 3.8% – CY26, 3.4% – CY27

Sponsored Advertisement

Key Findings:
Reason for Revision: The upward revision reflects stronger corporate earnings in 3rd quarter(Q3) and robust economic momentum in Q4.

The IMF’s prediction was just marginally lower than India’s government projection of 7.4% for the same period.

Upcoming Fiscal Years: The IMF has also projected that India’s growth would moderate to 6.4% in both FY27 and FY28, citing softening of cyclical and temporary factors.
Inflation Outlook: India’s inflation is projected to approach the Reserve Bank of India’s (RBI) target range of 2% to 6%, after a significant drop in 2025, largely due to easing food prices.
India Leads: Among emerging and developing Asian economies, India continues to lead, outpacing regional peers and contributing significantly to Asia’s projected 5.0% growth in 2026.
Global Economic Outlook:
Global growth: The IMF projected global growth at 3.3% for Calendar Year 2025 (CY25) and 3.2% for CY26, with the same 3.2% growth expected in 2027.

The growth is supported by easing trade tensions, accommodative financial conditions and a surge in technology-driven investment.

Global Inflation: The global inflation is projected to decline from an estimated 4.1% in CY25 to 3.8% in CY26 and further to 3.4% in CY27.
Global Trade Outlook: Global trade volume growth is projected to fall from 4.1% in CY25 to 2.6% in CY26, before rebounding to 3.1% in CY27, reflecting front-loading effects and adjustments in trade flows due to new policies.
Drivers of Global Growth: The IMF stated that steady global growth has been driven by a balance between challenges from uncertain trade policies and gains from increased AI and technology investments in North America and Asia.
About International Monetary Fund(IMF):
Managing Director (MD) –Kristalina Georgieva
Headquarters – Washington DC, the United States of America (USA)
Member Nations – 191
Established – 1944