Current Context: The International Monetary Fund (IMF) Article IV Consultation Report was released on November 27, 2025.
- It projects India’s Gross Domestic Product (GDP) growth at 6.6% in FY26, up from 6.5% in FY25.
- The report highlights strong Quarter 1 (Q1) FY26 growth of 7.8%, resilient demand, and Goods and Services Tax (GST) reforms.
- Inflation is expected to remain low at 2.8% in FY26, supported by stable food prices.
- The IMF reclassified India’s Foreign Exchange (FX) regime from “stabilized arrangement” to a “crawl-like arrangement.”
- This reflects greater rupee flexibility with Reserve Bank of India (RBI) interventions to curb volatility.
- The IMF also warned growth could slow to 6.2% in FY27.
Question:
Q.1 According to the IMF Article IV Consultation Report 2025, India’s GDP growth for FY26 is projected at:a) 6.2%
b) 6.6%
c) 6.5%
d) 7.0%
Answer: b) The IMF projected India’s FY26 GDP growth at 6.6%, reflecting a slight improvement over the FY25 estimate.
