Marking a vote of confidence in India’s resilience, the IMF has raised its 2025 economic growth projection to 7.3 percent, an increase of 0.7 points. The revision stems from better-than-anticipated activity in the year’s second half, spotlighted by solid Q3 data and Q4 momentum.
The World Economic Outlook underscores India’s lead among major economies, though it forecasts a dip to 6.4 percent growth in 2026-27. Nonetheless, India will anchor growth for emerging markets, surpassing their 4 percent average through Asian tech and trade synergies.
Encouragingly, inflation in India is poised to realign with targets after easing in 2025, with steady food prices supporting demand. Globally, 3.3 percent growth in 2026 will benefit from thawing trade relations, benign finance, and AI investment surges.
Potential pitfalls remain: if AI delivers less than hoped, investments may wane, financial conditions tighten, and emerging economies suffer. Optimistically, broad AI embrace could ignite productivity and global acceleration, barring financial disruptions.
India’s enhanced outlook signals robust fundamentals, attracting global attention as a cornerstone of future prosperity.