IMF upgrades India’s FY26 GDP forecast to 6.6% on policy and demand strength

India’s economic outlook improved after the IMF lifted its FY26 growth estimate to 6.6%, highlighting resilient domestic consumption, infrastructure expansion, and effective policy coordination. The revision cements India’s position as the world’s fastest-growing major economy. Economists linked the projection upgrade to stable inflation management, increased manufacturing output, and rising credit penetration. The IMF noted that tariff realignments and public investment are mitigating global headwinds, reinforcing investor confidence and long-term fiscal sustainability in the Indian economy.