The International Monetary Fund (IMF) has once again given positive signals regarding the Indian economy. In its World Economic Outlook report released on Tuesday, the IMF has revised its GDP growth forecast for India upwards. According to the latest estimates, India's economy is expected to grow at a rate of 6.7 percent in 2025, and at a pace of 6.4 percent in 2026.
These figures are slightly better than the IMF's previous forecast from April 2024. According to the report, this strength is attributed to rapid consumption and continuous reforms in India.
India's Growth Rate Remained Strong in 2024
The IMF stated that India's economy also recorded a growth rate of 6.5 percent in 2024. Deniz Igan, head of the IMF's research department, said that India's growth has been quite stable and is showing continuous signs of improvement. She acknowledged that the process of economic reforms in India has strengthened investment and consumption.
India Leads Among Fast-Growing Developing Countries
According to the IMF report, India's performance is considered the best among developing and emerging market economies. While the average growth rate for these countries is projected to be 4.1 percent in 2025, India's rate is estimated at 6.7 percent. India's growth rate will also be higher than these countries in 2026.
China's Figures Also Improved
The IMF has also slightly changed its stance on China. The organization has revised China's growth forecast to 4.8 percent for 2025, which was previously around 4 percent. This increase is mainly due to b economic activity in the first half of 2025 and a reduction in US-China trade tariffs.
Views on the US and Global Economy Also Changed
The IMF has also revised its previous estimates for the US economy. The US GDP growth rate is now expected to be 1.9 percent in 2025, while this figure could reach 2 percent in 2026. For the global economy, the IMF has projected a three percent growth rate in 2025, which is better than the 2.8 percent estimate made in April 2024. Meanwhile, the global economy's growth rate is projected to be 3.1 percent in 2026.
Weak Signals for Europe
The IMF report gives some weak signals for European countries. The growth rate of the group of 20 European countries may remain limited to just 1 percent this year. This clearly shows that the European region has not yet fully recovered from the economic slowdown.
The Pace of Reforms in India is the Basis of Economic Strength
The IMF has specifically stated in the context of India that a major reason for its stable economic growth is the pace of government reforms. Due to structural changes, digitalization, investment in infrastructure, and policy stability on the part of the government, both consumption and investment have strengthened in the country.
Public Investment and Consumption are the Support
The report also mentions that public investment has played an important role in India's economic strength. The heavy investment made by the government in infrastructure is now showing its effect. At the same time, there is a continuous increase in domestic consumption, which is creating the necessary base for economic growth.
India's Pace Maintained Despite Global Challenges
The IMF believes that even though uncertainty and economic pressure remain at the global level, India's economic situation remains stable. Steps taken in the direction of reforms and improvement in consumption demand have kept India safe even in times of global instability.
