IMF Retains India’s FY27 Growth Forecast At 6.5%
The International Monetary Fund (IMF) has reaffirmed its 6.5% growth forecast for India for FY2026-27, citing the country’s resilient economic performance despite geopolitical tensions in the Middle East and elevated global energy prices.
The IMF said India continues to be a key contributor to global economic growth, supported by strong domestic demand and sustained economic momentum. The forecast remains unchanged from the upward revision announced in April, reflecting the country’s robust growth trajectory.
According to the IMF, India’s economy performed better than expected during the first quarter of the calendar year. The multilateral institution noted that lower US tariff rates and the carryover of strong domestic economic activity from the previous year have helped offset the impact of higher energy costs arising from the Iran conflict.
The IMF also pointed to improving global conditions following the recent ceasefire in the Middle East and progress towards reopening the Strait of Hormuz, developments that have contributed to a moderation in oil prices. While crude oil prices have declined from their recent peaks, they remain approximately 10% higher than pre-conflict levels. Prices of several other commodities have also shown signs of easing.
The IMF is scheduled to release its updated global economic outlook on July 8, providing revised projections for the world economy amid evolving geopolitical and trade developments.
