13 October,2026 01:09 PM IST | Mumbai | mid-day online correspondent
Representational Image. File pic.
The International Monetary Fund (IMF) on Tuesday said India remains among the fastest growing major economies in the world and raised its FY27 GDP forecast to 7 per cent from earlier projection of 6.4 per cent, citing resilient domestic demand.
"India remains among the fastest-growing major economies, with growth in 2026 projected at 7.0 per cent," the IMF said in its October 2026 World Economic Outlook.
The IMF said India's data is on a fiscal year basis and the growth projections are 7.4 per cent for 2026 and 7.0 per cent for 2027 on a calendar year basis, it added.
"India stands out with upward revisions, reflecting sustained momentum and growing evidence of stronger growth potential supported by favourable demographic dynamics, a large and expanding domestic market, and continued structural reforms," it added.
The higher forecast comes at a time when global rating agencies and the World Bank have expected India to clock a robust growth, buoyed by the strong 7.8 per cent GDP growth in the Q1FY27.
On the Q1FY27 growth, the IMF said, "India's growth remained robust, underpinned by domestic demand and services, despite higher oil prices."
The IMF also raised the FY28 growth forecast to 7 per cent from 6.7 per cent estimated in July this year.
The upward revision for India comes amid the IMF expecting the global to grow at 3.1 per cent in 2026 and 3.4 per cent in 2027.
"Global economic prospects continue to be uneven, in both the short and the long term," it said.
"The medium-term outlook has become increasingly uneven, with downgrades concentrated among economies directly affected by the conflict in the Middle East and energy-importing emerging market and developing economies elsewhere, excluding India," it said.
It expects the global headline inflation to rise to 4.7 per cent this year, reflecting primarily higher commodity prices, before easing to 4.1 per cent in 2027.
"Risks are skewed to the downside. A prolonged stalemate or further escalation in the Middle East could keep energy and food prices elevated and volatile, revive inflationary pressures, worsen fiscal and external balances, and weigh on growth. Further disruptions to energy infrastructure, cyberattacks, or extreme weather events could amplify these effects," it said.
India's inflation is projected at 5 per cent in FY 27 before easing to 4.4 per cent in FY28, according to the IMF. This is lower than the 5.2 per cent estimated by the Reserve Bank of India (RBI).
It expects India's current account deficit is expected to widen 1.5 per cent in FY 27 and slightly narrow to 1.3 per cent in FY28.
