According to the IMF’s latest World Economic Outlook report, India is projected to remain one of the fastest-growing emerging market and developing economies in 2025–26, with growth estimated at 6.6%. The upward revision reflects India’s strong first-quarter performance, which offset the impact of higher U.S. tariffs on Indian exports. China’s growth, by comparison, is forecast at 4.8%, positioning India ahead once again. The IMF expects India’s growth to moderate slightly to 6.2% in 2026, as early-year momentum fades.
Global growth is projected at 3.2% in 2025, slowing to 3.1% in 2026, with inflation easing unevenly across regions. Advanced economies are expected to grow at 1.6%, while emerging markets average 4.2%. Spain is forecast to lead advanced economies with 2.9% growth, followed by the U.S. at 1.9%, Brazil at 2.4%, Canada at 1.2%, and Japan at 1.1%.
The IMF warned that uncertainty, trade protectionism, and financial vulnerabilities could hinder global stability, urging nations to rebuild fiscal buffers, preserve central bank independence, and strengthen structural reforms to sustain growth.
