India’s growth forecast for 2025 and 2026 raised to 6.4% by the IMF

Current Context: On July 29, 2025, the International Monetary Fund (IMF) released its World Economic Outlook (WEO) Update, revising India’s Gross Domestic Product (GDP) growth forecast to 6.4% for both 2025 and 2026.

• This marks India as the world’s fastest-growing major economy, ahead of countries like China and the United States (US).
• The upgrade reflects strong domestic consumption, rising public investment, and sustained structural reforms.
• A more stable global economic environment also contributed to the optimistic outlook.
• Global growth was revised to 3.0% in 2025 and 3.1% in 2026, signaling cautious optimism.

Question:

Q.1 According to the IMF’s World Economic Outlook (WEO) update released on July 29, 2025, what is India’s projected GDP growth rate for 2025 and 2026?
a) 6.1%
b) 6.4%
c) 6.8%
d) 7.0%

Answer: b) The IMF revised India’s GDP growth forecast to 6.4% for both 2025 and 2026, citing strong domestic demand, public investment, and reforms.