IMF upgrades growth forecasts for India and ASEAN economies

The International Monetary Fund revised upward its growth forecasts for major South and Southeast Asian economies in its latest assessment, signalling sustained momentum in the region despite global headwinds. India and ASEAN member states are expected to expand at a faster pace than previously anticipated, driven by robust domestic consumption and investment activity.

The upgrade reflects improved conditions across key indicators, including easing price pressures that have constrained central banks in recent years. Policymakers in the region have maintained supportive monetary stances while inflation has gradually declined toward target levels, providing scope for continued economic expansion.

The revision underscores the region's relative strength compared to other parts of the global economy. South and Southeast Asia have benefited from structural advantages including large working-age populations, rising middle-class consumption, and increasing foreign direct investment in sectors such as technology and manufacturing.

However, the IMF cautioned that external risks remain, including potential trade tensions, volatile capital flows, and the impact of monetary policy decisions by major central banks. Regional authorities are expected to continue balancing growth support with price stability as economic conditions evolve in coming quarters.