IMF raises India’s GDP growth forecast to 7% for 2026-27

The International Monetary Fund (IMF) has increased its forecast for India’s GDP growth in 2026-27 to 7 per cent, from 6.4 per cent in July. In its flagship World Economic Outlook, the IMF attributed the upgrade to stronger-than-expected economic momentum, underpinned by resilient domestic demand and vigorous activity in the services sector. The report noted that India was among the economies receiving an upward revision, citing sustained momentum and signs of stronger growth potential, supported by favourable demographics, an expanding domestic market and ongoing structural reforms. The revision follows the Reserve Bank of India’s (RBI) latest monetary policy meeting, at which it raised its growth estimate for the current financial year to 7.1 per cent. The IMF also raised its FY28 growth projection for India by 0.3 percentage points to 7 per cent, highlighting the resilience of the country’s expansion.