IMF On India: Growth Upgraded, Inflation Down – But Reforms Needed

IMF Research Department’s Deniz Igan has given a fresh outlook for the Indian economy – projecting 6.4% growth for both 2025 and 2026, slightly upgraded from earlier forecasts. The upward revision is credited to the suspension of higher tariffs, strong consumption growth, and a steady push for public investment. Inflation projections are also revised down to 3.7% in 2025 and 4% in 2026, thanks to easing food prices. But the IMF has warned that sustaining this momentum will require job creation, labour reskilling, infrastructure investment, and land and trade reforms. Will India stay on track to become the world’s third-largest economy?