The IMF upgraded India’s GDP growth forecast for FY2025-26 to 6.6%, up from 6.4%.
This upward revision is driven by India’s resilient private consumption in Q1.
The IMF flagged rising U.S. tariffs as a dampener but said India’s momentum offsets it.
It also lowered the projection for FY27 to 6.2%.
The stronger growth outlook may attract more fore
ign flows into India.
Equities and high-growth sectors may gain from optimism.
But external risks and trade pressures remain threats.
Investors should watch how this revision influences val
uation multiples.
Use stop losses in high-beta names to manage downside risk.
The new forecast adds a bullish macro anchor to market senti
ment.