IMF Upgrades India’s Growth Forecast To 7.3% For 2025 Despite Global Trade and Tariff Tensions

The International Monetary Fund has revised upwards its estimate of India’s GDP growth in the current financial year 2025-26 to 7.3% from its earlier prediction of 6.6%.

This upward revision, the IMF said in its January 2026 World Economic Outlook update released on Monday (January 19, 2026), was primarily a reflection of stronger-than-expected growth in the third quarter, and “strong momentum” in the fourth quarter.

“In India, growth is revised upward by 0.7 percentage point to 7.3% for 2025 [FY 2025-26], reflecting the better-than-expected outturn in the third quarter of the year and strong momentum in the fourth quarter,” the report said. “Growth is projected to moderate to 6.4 percent in 2026 and 2027 as cyclical and temporary factors wane.”