The International Monetary Fund (IMF) has upgraded India's economic growth forecast for 2026 to 6.5%, an increase from the previous estimate of 6.4% made in January. This revision is attributed to strong growth momentum anticipated from 2025 and a significant reduction in U.S. tariffs on Indian goods, which have dropped from 50% to 10%. The IMF also projects that India's growth will stabilize at 6.5% in 2027. In contrast, the Indian government has set a more optimistic growth target of 7.6% for FY26. On the inflation front, the IMF forecasts a rise in prices, with inflation expected to increase to 4.7% in FY27, up from 2.1% in FY26, before returning to the Reserve Bank of India's target of 4% in FY28. Meanwhile, the global economic growth outlook has been revised down to 3.1%, reflecting broader economic uncertainties, including those stemming from the Middle East crisis.