IMF lifts India’s growth forecast to 7%

The International Monetary Fund (IMF) has raised India’s economic growth forecast to 7 per cent for 2026-27, up from the earlier projection of 6.4 per cent in July.

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India’s growth remained robust, underpinned by domestic demand and services, despite
higher oil prices, it said.

India stands out with upward revisions, reflecting sustained momentum and growing evidence of stronger growth potential supported by favorable demographic dynamics, a large and expanding domestic market, and continued structural reforms, IMF said.

In most of these economies, with India an exception, stabilizing debt-to-GDP ratios at 2025 levels would require greater fiscal consolidation than currently envisaged under existing policies, it said.

Global economic activity has proven resilient once again. The technology upturn, buffers, and adaptations have helped mitigate the damage from geopolitics-driven disruptions.

IMF said the global growth is projected to slow to 3.1 percent in 2026 and rebound to 3.4 percent in 2027. Global headline inflation is projected to rise notably to 4.7 percent in 2026 before easing to 4.1 percent in 2027.

Energy-importing economies outside the technology value chain face the most difficult outlook, it said.

IMF projects India’s growth to be at 7 per cent in 2027-2028.

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