IMF (International Monetary Fund) has increased India’s GDP growth estimate by 0.7 percent to 7.3% for the financial year 2025-26. Keeping in mind the better than expected results in the third quarter of the current financial year and the strong momentum in the fourth quarter, the IMF has made these changes in the country’s GDP growth. Let us tell you that earlier in October, IMF had estimated GDP growth of 6.6 percent for India. The IMF, in its World Economic Outlook 2026, has projected India’s growth to slow to 6.4% in FY27 and FY28 as cyclical and temporary factors ease.
AI and geopolitical tension can cause a big market crash
The IMF said inflation in India is expected to return close to the target level in 2025 due to falling food prices. The International Monetary Fund also raised its forecast for global economic growth for calendar years 2025 and 2026 to 3.3% from 3.2% and 3.1% in October. For 2027, it has projected 3.2% growth. However, it warned that high expectations about AI, as well as rising trade and geopolitical tensions, could lead to a major market crash and disrupt the global economy.
What did rating agency Moody’s say about India’s GDP growth?
Rating agency Moody’s has also estimated India’s GDP growth rate to be 7.3 percent in the current financial year, which will support the average household income due to strong economic expansion and will strengthen the demand for insurance. In its report on India’s insurance sector, Moody’s said the industry is likely to benefit from sustained premium growth driven by strong economic expansion, increasing digitalisation, tax changes and proposed reforms in the key state-owned insurance sector.
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