The IMF projects that India will achieve a robust growth rate of 6.4% in both 2025 and 2026, driven by strong economic reforms that ensure stability.
WASHINGTON, DC, August 5, 2025 — India is set to achieve a robust growth rate of 6.4 percent in the fiscal years 2025 and 2026. This impressive trajectory is underpinned by dynamic reforms that effectively stimulate consumer demand and drive significant public investment, according to the International Monetary Fund.
The International Monetary Fund (IMF) released its World Economic Outlook (WEO) Update last week.
According to the report, India’s growth is projected to be 6.4 percent for both 2025 and 2026. These figures have been revised slightly upward due to a more favorable external environment than previously assumed in the forecast from April.
It is important to note that the IMF presents data and projections for India on a fiscal year (FY) basis. For the calendar year, India’s growth projections are 6.7 percent for 2025 and 6.4 percent for 2026.
During a press briefing, Deniz Igan, the Division Chief of the IMF Research Department, addressed a question about India’s economy. She stated, “India has demonstrated quite stable growth.”
Igan noted that India experienced a growth rate of 6.5 percent in 2024 and is projected to grow at 6.4 percent in both 2025 and 2026. These growth projections for the upcoming years represent slight upgrades from the estimates provided in April, with increases of 0.2 percentage points for 2025 and 0.1 percentage points for 2026.
She explained that the key driver behind India’s relatively stable growth is the ongoing reform momentum, which supports robust consumption growth alongside a push for public investment.
Looking ahead, Igan emphasized the importance of maintaining this momentum and continuing the strong growth performance that India has recently achieved.
For India, the main priorities should include fostering job creation and absorbing excess labor from the agricultural sector by reskilling workers and allowing more flexibility in the labor market. At the same time, it is essential to continue investing in infrastructure and removing trade restrictions.
“In the medium term, India needs to keep investing in education, implement land reforms, expand the social safety net, and reduce bureaucratic hurdles to help businesses perform better,” she stated.
The IMF has projected global growth to be three percent in 2025 and 3.1 percent in 2026.
Source: International Monetary Fund (IMF)
— The Editor of CitiTimes holds an Academic Certificate from the International Monetary Fund (IMF).
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