International Monetary Fund Lifts India’s FY27 GDP Growth Projection to 7% in Latest World Economic Outlook

Key facts

• The International Monetary Fund (IMF), in its World Economic Outlook released during its annual meetings in Bangkok, raised India's GDP growth forecast for FY27 (2026-27) by 60 basis points to 7% from 6.4% estimated in July.
• The IMF also raised its FY28 growth forecast for India to 7% from 6.7%, citing stronger-than-expected economic momentum, resilient domestic demand and robust services activity.
• The Reserve Bank of India (RBI) raised its FY27 real GDP growth forecast to 7.1% from 6.7% in August, while the World Bank raised its forecast by 50 basis points to 7.1% and the OECD raised its projection by 80 basis points to 7.1%.
• The IMF marginally raised its global growth forecast for 2026 to 3.1% from 3% in July, while retaining its 2027 projection at 3.4%.
• The IMF's July downgrade had cut India's FY27 projection by 10 basis points to 6.4% from 6.5% in April, citing higher energy prices.
• The IMF noted that trade agreements such as the EU's and the UK's agreements with India could lower trade barriers and strengthen supply-chain resilience, with benefits depending on implementation.