India Growth Seen At 6.5% In FY27: IMF
International Monetary Fund (IMF) has projected India to maintain a steady growth rate of 6.5% in FY27, retaining its position as the world’s fastest-growing major economy despite rising geopolitical tensions in West Asia.
In its latest World Economic Outlook released in Washington, D.C., the IMF also revised India’s FY26 growth forecast upward by 0.3 percentage points to 6.5%. The upgrade reflects the carryover effect of strong economic performance in 2025 and a significant reduction in additional tariffs imposed by the United States on Indian goods, which were lowered from 50% to 10%.
The IMF noted that the positive impact of easing trade barriers and domestic momentum is expected to outweigh the adverse effects of ongoing geopolitical tensions in West Asia. Growth is projected to remain stable at 6.5% in 2027, indicating sustained economic resilience.
On the global front, the IMF has slightly lowered its growth outlook, projecting world GDP to expand by 3.1% in 2026 and 3.2% in 2027, compared to an estimated 3.4% in 2025. At market exchange rates, global output is expected to grow at 2.6% in both 2026 and 2027.
The report highlighted that while geopolitical risks continue to weigh on the global economy, their impact has been partially offset by factors such as easing tariff pressures, ongoing policy support and stronger-than-expected economic performance in late 2025 and early 2026.
