The upward revision reflects the better-than-expected outturn in the third quarter of the year and strong momentum in the fourth quarter. Growth is projected to moderate to 6.4 per cent in 2026 and 2027 as cyclical and temporary factors wane, it said in its 2026 World Economic Outlook Update.
India is expected to go back to near target levels after a marked decline in 2025 driven by subdued food prices, IMF said.
India is expected to grow 7.2 per cent in FY 2025-2026, World Bank’s recent Global Economic Prospects report.
India’s Gross Domestic Product (GDP) is expected to grow 7.4 per cent in FY 2025-26, driven by a buoyant services sector, as per the first Advance Estimates released by the Union government.
Global economic growth continues to show notable resilience despite significant US-led trade disruptions and heightened uncertainty, IMF said.
Its latest projections indicate that global growth will hold steady at 3.3 per cent in 2025-2026, an upward revision of 0.2 percentage points compared to October estimates, with most of the improvement accounted for by the United States and China.
The global economy has shaken off the immediate impact of the tariff shock, amid tech driven boom, IMF said.
But risks are rising, including from the concentration of tech investment and the negative effects of trade disruptions, which may build over time, it warned.
Read more here: https://www.imf.org/en/publications/weo/issues/2026/01/19/world-economic-outlook-update-january-2026?cid=sm-com-x-WEOET2026003
