Mumbai, April 15 -- India's economy is expected to grow faster than earlier projected despite concerns over a Middle East crisis, the International Monetary Fund (IMF) said on April 14, raising its forecast to 6.5% from 6.4% estimated in January.

For 2026, growth has been revised up by 0.3 percentage points (0.1 percentage point higher than the January estimate) to 6.5%. The IMF said this is supported by strong momentum from 2025 and a reduction in additional U.S. tariffs on Indian goods from 50% to 10%, which offsets the negative impact of the Middle East conflict. Growth is expected to remain at 6.5% in 2027.

The Indian government, however, has projected a higher growth rate of 7.6% for FY26, about one percentage point above the IMF's...