IMF Projects India’s Economy to Grow at 6.6% in FY 2025-26

The International Monetary Fund (IMF) has projected that India will grow at 6.6% in FY 2025-26, remaining one of the fastest-growing emerging economies. This comes despite global economic challenges, including US tariffs and slowing worldwide growth.

IMF Projects India’s Economy to Grow at 6.6% in FY 2025-26

Key Points

India vs China: India is expected to outpace China, which is projected to grow at 4.8%.
2026 Projection: Growth may moderate to 6.2% due to fading momentum.
Global Growth: Expected to slow from 3.3% in 2024 to 3.2% in 2025 and 3.1% in 2026.
Advanced Economies Growth: Average 1.6%, with Spain fastest at 2.9%. US growth projected at 1.9%.
Emerging Economies Growth: Average 4.2%, with slight slowdown in 2026.

Factors Supporting India’s Growth:

Strong Q1 FY26 growth at 7.8%
Robust domestic consumption
Carryover effect of first-quarter momentum

Global Risks Highlighted by IMF:

Protectionism and trade disputes (e.g., US tariffs)
Labour supply shocks
Fiscal vulnerabilities and financial market instability
Institutional erosion

IMF Recommendations:

Restore confidence through credible, transparent, and sustainable policies
Maintain central bank independence
Rebuild fiscal buffers
Focus on structural reforms and trade diplomacy

India’s FY 2024-25 Growth: 6.5% (real terms)
Government’s FY 2025-26 GDP Forecast: 6.3–6.8%

Exam-Oriented Facts

India’s projected GDP growth FY 2025-26: 6.6% (IMF)
India expected to outperform China (4.8%)
Q1 FY26 growth: 7.8%
Global growth projected: 3.2% in 2025, 3.1% in 2026
Advanced economies average growth: 1.6%
Emerging economies average growth: 4.2%
Key risks: Protectionism, labour shocks, fiscal & financial instability

Question & Answer

Q1. What is India’s projected GDP growth for FY 2025-26 according to IMF?
(a) 6.2%
(b) 6.5%
(c) 6.6%
(d) 6.8%
Answer: 6.6%

Q2. Which country’s growth India is expected to surpass in 2025?
(a) USA
(b) China
(c) Brazil
(d) Japan
Answer: China

Q3. What was India’s growth in the first quarter of FY26?
(a) 6.5%
(b) 7.8%
(c) 6.2%
(d) 5.9%
Answer: 7.8%

Q4. What is the IMF’s projected global growth for 2026?
(a) 3.3%
(b) 3.2%
(c) 3.1%
(d) 2.9%
Answer: 3.1%

Q5. Which of the following is NOT listed as a risk to global growth by IMF?
(a) Prolonged protectionism
(b) Labour supply shocks
(c) Technological innovation
(d) Fiscal vulnerabilities
Answer: Technological innovation

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