IMF raises India growth forecast to 7% for two years

The International Monetary Fund raised its forecast for India’s economic growth to 7% in both fiscal years 2027 and 2028, citing stronger-than-expected momentum, resilient domestic demand and robust services activity in its October 2026 World Economic Outlook. The projections mark an increase from the IMF’s July estimates of 6.4% for FY27 and 6.7% for FY28. They are forecasts, not confirmed growth outcomes. The Fund said India’s outlook reflects sustained momentum and a large domestic market, alongside favourable demographic dynamics and continued structural reforms. The Reserve Bank of India has projected 7.1% growth for the current fiscal year, slightly above the IMF’s 7% forecast for FY27. The two institutions’ estimates both point to strong growth, though they are projections made by separate bodies. The IMF also warned that the global outlook faces risks from geopolitical tensions and higher energy costs. It projects worldwide growth of 3.1% in 2026 and 3.4% in 2027.