NEW DELHI — The International Monetary Fund (IMF) has raised its forecast for India’s economic growth to 7 per cent for the 2026–27 financial year, citing stronger domestic demand and continued activity in the services sector.
The revised estimate represents an increase of 0.6 percentage points from the IMF’s earlier projection of 6.4 per cent. The organisation has also raised its growth forecast for India to 7 per cent for the 2027–28 financial year.
India remains among the fastest-growing major economies, supported by domestic consumption, a large market and ongoing structural reforms. The economy recorded growth of 7.8 per cent in the previous financial year and in the April–June quarter of the current financial year.
The revised outlook comes amid uncertainty in the global economy. The IMF has raised its global growth forecast for 2026 slightly to 3.1 per cent, while maintaining its projection of 3.4 per cent for 2027.
Geopolitical tensions, higher energy prices and changes in technology investment continue to pose risks to the global economic outlook. Countries that depend heavily on imported energy could face additional pressure if oil prices remain elevated.
The IMF expects India’s consumer inflation to average 5 per cent in the current financial year before easing to 4.4 per cent in 2027–28. However, rising oil prices could increase India’s import bill and widen its current account deficit.
The revised forecast highlights India’s economic strength while pointing to the importance of managing inflation and external risks in the months ahead.
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