New Delhi12 hours ago
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The International Monetary Fund (IMF) said that India’s economy will remain strong despite external challenges such as global uncertainties. India’s real GDP growth is estimated to be 6.6% in the financial year 2025-26.
Whereas next year (fiscal year 2026-27) it may decrease slightly to 6.2%. Apart from this, IMF has also said in its latest World Economic Outlook report that inflation will also remain under control in India.
IMF’s projection, why will India’s growth remain fast?
The IMF report says that India’s economy will be among the fastest growing large economies globally. After 6.5% growth in fiscal year 2024-25, GDP is set to grow by 7.8% in the first quarter of 2025-26. This is due to domestic demand and better conditions.
The impact of external headwinds such as global economic slowdown or geopolitical risks will be minimal. In the report, credit has been given for growth to domestic factors, which make India resilient. An important point of the report is inflation.
IMF said, ‘Headline inflation projected to remain well contained.’ Meaning, prices will remain stable in the coming months. Inflation in India is already around the RBI target, which will boost the economy. This controlled inflation will increase consumer confidence and support investment.
World Bank had also increased India’s GDP growth estimate.
Before IMF, World Bank and Reserve Bank of India (RBI) also increased India’s GDP growth estimates. The World Bank last week raised its forecast for FY26 to 6.5% from 6.3%, citing strong consumption and GST reforms. At the same time, RBI also increased its estimate from 6.5% to 6.8%.
What are the external challenges, how will growth be sustained?
The IMF mentioned external headwinds, such as global trade tensions, high interest rates or supply chain issues. But the report says that despite external headwinds, India’s growth will remain strong due to favorable domestic conditions.
Apart from this, India’s strong domestic demand and policy support will save it. In the last years, India has recovered from Covid and global crisis, which will help this time also.
What did IMF experts say?
Senior IMF official said, ‘This projection puts India ahead of China and other emerging markets. Domestic factors will make growth sustainable. These statements are based on the latest meetings and data analysis of IMF.
Where will India’s economy reach?
It is clear from the IMF report that India will maintain growth above 6% in the next two years. This is a positive signal for the global economy, because India is becoming a consumer market and manufacturing hub.
In future, if the government focuses on infrastructure and skill development, then the growth can go up to 7%. But external risks like oil prices or climate changes will have to be kept an eye on. Overall, this report is good news for investors.
