Our Bureau
New Delhi
India’s economy is projected to grow by 7 per cent in the 2027-28 financial year, retaining its position as the world’s fastest-growing major economy, according to the International Monetary Fund’s (IMF) latest World Economic Outlook update.
The IMF has raised India’s growth forecast for 2026-27 to 7 per cent from its earlier estimate of 6.4 per cent in July. Its projection for 2027-28 has also been revised upwards to 7 per cent from 6.7 per cent. The upward revisions reflect stronger-than-expected economic momentum, supported by resilient domestic demand and robust activity in the services sector.
The multilateral institution attributed India’s economic resilience to favourable demographic trends, an expanding domestic market and continued structural reforms. These factors are expected to support consumption and economic activity despite mounting global uncertainties.
The revised outlook comes amid geopolitical tensions, including the US-Iran conflict and the Russia-Ukraine war, which pose risks to energy supplies and international trade. Higher crude oil prices could increase India’s import bill and exert pressure on inflation, given the country’s dependence on imported energy.
Globally, the IMF expects economic growth to remain moderate, with the world economy projected to expand by 3.1 per cent in 2026 and 3.4 per cent in 2027. The institution has cautioned that geopolitical disruptions, elevated energy prices and financial vulnerabilities could weigh on the global outlook.
India’s upward revision underscores the relative strength of its domestic economic drivers in an uncertain international environment. However, sustaining the projected growth will depend on maintaining consumption, investment and services-sector momentum while managing external economic pressures.