IMF signals possible revision of India's GDP outlook after stronger-than-expected Q3
Speaking ahead of the IMF’s January World Economic Outlook (WEO) update, International Monetary Fund spokesperson Julie Kozack said India has become a major engine of global growth
- Jan 16, 2026,
- Updated Jan 16, 2026 2:54 PM IST
India’s growth momentum is drawing fresh attention at the International Monetary Fund, with officials indicating that the country’s economic outlook could be revised upward in the IMF’s next update, reinforcing its role as a key pillar of global expansion.
Speaking ahead of the IMF’s January World Economic Outlook (WEO) update, International Monetary Fund spokesperson Julie Kozack said India has become a major engine of global growth. In its most recent Article IV staff report, the IMF had pencilled in 6.6% growth for India in the 2025–26 financial year, driven largely by strong domestic consumption.
India’s economic performance in the third quarter has come in stronger than anticipated, improving the odds of an upward revision when the IMF releases its updated projections in the coming days.
“The bottom line for us on India is that it has been a key driver of global growth, and growth has been quite robust,” Kozack said, adding that India’s performance continues to stand out among major economies.
The IMF’s assessment reflects sustained confidence in India’s fundamentals. Solid consumer demand, steady investment activity and policy continuity are seen as central supports to growth, even as global conditions remain uneven.
Markets and policymakers are now closely watching the January WEO update, which could further cement India’s status as one of the fastest-growing large economies at a time when many peers are slowing.
At the global level, the IMF had marginally raised its 2025 global GDP growth forecast to 3.2% in October, from 3.0% earlier, after the impact of US tariffs proved less disruptive than expected. The outlook for 2026 was left unchanged at 3.1%.
While overall global growth remains moderate, the IMF’s latest signals underscore how India’s resilience and consumption-led expansion continue to provide a meaningful lift to the world economy.
India’s growth momentum is drawing fresh attention at the International Monetary Fund, with officials indicating that the country’s economic outlook could be revised upward in the IMF’s next update, reinforcing its role as a key pillar of global expansion.
Speaking ahead of the IMF’s January World Economic Outlook (WEO) update, International Monetary Fund spokesperson Julie Kozack said India has become a major engine of global growth. In its most recent Article IV staff report, the IMF had pencilled in 6.6% growth for India in the 2025–26 financial year, driven largely by strong domestic consumption.
India’s economic performance in the third quarter has come in stronger than anticipated, improving the odds of an upward revision when the IMF releases its updated projections in the coming days.
“The bottom line for us on India is that it has been a key driver of global growth, and growth has been quite robust,” Kozack said, adding that India’s performance continues to stand out among major economies.
The IMF’s assessment reflects sustained confidence in India’s fundamentals. Solid consumer demand, steady investment activity and policy continuity are seen as central supports to growth, even as global conditions remain uneven.
Markets and policymakers are now closely watching the January WEO update, which could further cement India’s status as one of the fastest-growing large economies at a time when many peers are slowing.
At the global level, the IMF had marginally raised its 2025 global GDP growth forecast to 3.2% in October, from 3.0% earlier, after the impact of US tariffs proved less disruptive than expected. The outlook for 2026 was left unchanged at 3.1%.
While overall global growth remains moderate, the IMF’s latest signals underscore how India’s resilience and consumption-led expansion continue to provide a meaningful lift to the world economy.