IMF: India Outlook Lifted Due To Momentum, Domestic Tax Reforms

At the IMF Spring Meetings 2026, IMF APAC Director Krishna Srinivasan struck a cautiously optimistic tone on India, noting a modest upward revision to the 2026 growth forecast driven by strong recent momentum, lower tariffs and last year’s tax reforms. However, he warned that if Middle East tensions intensify, the shock could turn disruptive for India as well. On the broader Asia-Pacific region, he flagged downside risks, particularly for economies exposed to energy imports, and stressed the need for fiscal prudence. He added that remittances remain robust so far, reflecting continued workforce presence from India and other Asian economies in the Middle East.