IMF Upgrades India’s FY26 GDP Forecast to 6.6%, Outpacing China’s Growth Outlook

The International Monetary Fund revised India’s FY26 growth projection upward to 6.6%, citing resilient domestic demand, a strong banking sector, and sustained capital expenditure momentum. The forecast places India ahead of China, projected at 4.5%, reinforcing the country’s role as a key global growth engine. IMF analysts attributed the optimism to easing inflation pressures and steady credit expansion. Economists expect the upcoming Union Budget to maintain a balance between fiscal consolidation and infrastructure investment to sustain medium-term momentum amid moderating global demand conditions.