Our Bureau
Mumbai
The International Monetary Fund (IMF) has lowered India’s economic growth forecast for FY2026-27 to 6.4 per cent, down from its earlier estimate of 6.5 per cent, citing heightened global trade uncertainty and weaker external demand. Despite the downward revision, India is expected to remain the world’s fastest-growing major economy.
The revised projection was released in the IMF’s latest update to the World Economic Outlook, which noted that escalating trade tensions, slowing global growth and persistent geopolitical risks continue to weigh on economic prospects worldwide. The IMF, however, revised upwards its growth estimate for India at 6.7 per cent for the next financial year, reflecting resilience in domestic demand and continued public investment.
The global lender said India’s economy remains supported by robust private consumption, sustained government capital expenditure and a healthy services sector. However, it cautioned that slowing global trade, tighter financial conditions and uncertainty surrounding tariff policies could moderate growth in the coming year.
The IMF also trimmed global growth projections, warning that protectionist measures and geopolitical conflicts are affecting investment and cross-border trade. Emerging markets, including India, could face indirect impacts through weaker exports and subdued external demand, even as domestic fundamentals remain relatively strong.
The latest assessment comes as policymakers continue efforts to sustain economic momentum through infrastructure development, fiscal consolidation and reforms aimed at boosting private investment.
