According to the World Economic Outlook report by the International Monetary Fund (IMF), India's economic growth is expected to be 6.5 percent in 2025 and 2026.

India's growth slowed from 8.2 percent in 2023 to 6.5 percent in 2024 but is expected to remain stable in 2025 and 2026. The International Monetary Fund (IMF) has said that although industrial sector problems have impacted India's growth in 2024, consumer demand is rising and India is being helped by reforms that have made it easier for the business world.

Economists say India remains one of the fastest-growing major economies in the world in recent times. While the US performed better, European countries face higher costs for energy and lower productivity, and China is projected to grow by 4.5 percent in 2025, the report said.

According to reports, the Reserve Bank of India is likely to cut interest rates next month if inflation continues to decline.

Strong growth in the services sector and policies to support the manufacturing sector are key to India's growth. According to the IMF, India is likely to remain on a healthy growth trajectory till 2026.

The IMF expects global inflation to fall to 4.2% in 2025 and 3.5% in 2026.