India set to outpace China in FY26 as IMF raises growth forecast to 6.6%

The International Monetary Fund (IMF) has revised India’s GDP growth outlook upwards to 6.6% for 2025-26, signalling that India may outpace China’s projected 4.8%. The upgrade comes despite headwinds from U.S. tariffs, reflecting strong domestic demand, an investment uptick and resilient services sector. Analysts caution that full-year risks include inflation, global slowdown and external pressures. However, the positive revision is seen as a vote of confidence and supports equity and credit market sentiment domestically.