Author: Nishtha Mehrotra | EQMint
Synopsis
- The IMF raised India’s FY27 GDP growth forecast to 7%, up from 6.4% in July.
- Strong domestic demand, services activity and structural reforms support the improved outlook.
- India’s growth forecast for FY28 also increased to 7%.
- Global growth remains uneven, with geopolitical tensions and higher oil prices posing risks.
The International Monetary Fund (IMF) has raised India’s GDP growth forecast for FY27 to 7%, up from its earlier estimate of 6.4%, citing resilient domestic demand and strong services activity. The revision comes days after the Reserve Bank of India (RBI) projected 7.1% growth for the current financial year.
India’s growth outlook improves
The IMF also raised its FY28 growth forecast to 7%, compared with 6.7% projected in July. The organisation attributed India’s stronger outlook to favourable demographics, an expanding domestic market and continued structural reforms.
Global economy faces uneven growth
The IMF expects global GDP to grow 3.1% in 2026 and 3.4% in 2027. However, the outlook remains uncertain due to the economic impact of the conflict in West Asia and disruptions to energy supplies.
The IMF’s projections assume average crude oil prices of $95.74 per barrel in 2026, around 41% higher than in 2025. Higher energy costs could increase inflationary pressure and weigh on economies dependent on imported fuel.
What lies ahead?
While India’s revised forecast signals economic resilience, risks from global conflicts, energy prices and financial instability remain. The IMF has called for policies that address immediate economic risks while supporting technology, skills and more balanced long-term growth.
Disclaimer: This article is for information purposes only and is not investment advice.
For more such information, visit EQMint
Join our WhatsApp channel for timely updates: Whatsapp
