IMF says India’s economy will stay robust despite external headwinds as inflation remains “well contained”

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The International Monetary Fund (IMF) on Wednesday expressed confidence in India’s economic outlook, stating that growth will remain solid even with external uncertainties.

According to the IMF, “headline inflation is projected to remain well contained”, signalling stable prices in the coming months.

On economic growth, the IMF noted that the country is set to maintain momentum. “India’s real GDP is projected to grow at 6.6 percent in FY2025/26 before moderating to 6.2 percent in FY2026/27,” the statement said.

It added that the resilience is backed by improving conditions at home.

“Despite external headwinds, growth is expected to remain robust, supported by favourable domestic conditions.”


The IMF also reviewed India’s recent performance, pointing to strong quarterly data. “Following economic growth of 6.5 percent in FY2024/25, India’s real GDP expanded by 7.8 percent in the first quarter of FY2025/26,” it said.The latest update suggests that India will continue to be one of the fastest-growing major economies globally, supported by firm domestic demand and controlled inflation.



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