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<h1>India's economy: IMF raises FY26 growth forecast to 7.3% and expects inflation to return near target.</h1> The IMF projects India's GDP at 7.3% for fiscal 2025-26, up 0.7 percentage point from earlier forecasts due to stronger third- and fourth-quarter performance, with moderation to 6.4% in 2026-27 and 2027-28 as temporary factors wane. It anticipates headline inflation returning near the Reserve Bank's CPI inflation target of 4% ( 2 percentage points) following a decline in 2025 driven by subdued food prices, and places India's revision within a global outlook of slightly firmer growth in 2026 and falling global inflation through 2027.