IMF projects 7% Indian GDP growth in 2026 and 2027 amid fragile global outlook

New Delhi: The International Monetary Fund (IMF) has projected India's economy to grow by 7 per cent in both FY27 and FY28, even as it warned that the resilience of the global economy is becoming increasingly fragile amid higher energy and food prices and geopolitical uncertainty.The IMF (International Monetary Fund) projects India's GDP growth at 7.0% for 2026 and 2027. IMF also says, "The global economy remains resilient, but that resilience is becoming more fragile and more uneven. Growth is projected at 3.1% in 2026 and 3.4% in 2027, while inflation… pic.twitter.com/47sY9AxKAI— ANI (@ANI) October 13, 2026 “The global economy remains resilient, but that resilience is becoming more fragile and more uneven,” the IMF said in its October 2026 World Economic Outlook, projecting global growth at 3.1 per cent in 2026 and 3.4 per cent in 2027.The Fund expects global inflation to rise to 4.7 per cent in 2026, driven largely by higher energy and food prices, before easing to 4.1 per cent in 2027.GST Officers Told To Widen Taxpayer Base, Boost Cash Collections; B2C E-Invoicing From April 2027 India's growth outlook remains strong India remains among the fastest-growing major economies, with the IMF attributing its growth outlook to stronger-than-expected momentum, resilient domestic demand and robust services activity. The report projects India's growth at 7 per cent in both FY27 and FY28.However, the global outlook remains uneven, with the impact of the energy shock differing across countries depending on their exposure to the conflict in the Middle East, commodity prices and the strength of technology-related investment.Global economy withstands repeated shocksGold Prices Fall ₹1,400 To ₹1.53 Lakh Per 10 Grams As Stronger Rupee Weighs On Bullion Market The IMF said the global economy had withstood repeated shocks partly because of flexible energy supplies, increased production in other countries, the use of inventories and a shift towards alternative energy sources. Investment linked to artificial intelligence has also supported economic activity and international trade.But the Fund warned that these sources of support may not be sufficient if disruptions persist. It said dwindling energy inventories, further geopolitical shocks and prolonged uncertainty could weigh on confidence and economic activity.Geopolitical tensions pose downside risks “Risks are skewed to the downside,” the report said, warning that a prolonged stalemate or further escalation in the Middle East could keep energy and food prices elevated, revive inflationary pressures and weaken growth.Centre Caps Cancer Drug Trade Margins At 30 Per Cent, Supreme Court Questions High Prices Of Other Medicines The report also projected that world trade volume growth would slow in 2026 and stabilise in 2027, reflecting the impact of tariffs, adjustments in production chains and continued strength in technology-related trade.Against this backdrop, it said, “Global imbalances are expected to decline only modestly over the medium term, as large fiscal deficits, limited domestic rebalancing, technology-driven capital flows, and differing demand compositions across major economies under current policies continue to sustain external gaps,” the report added.AI investment and financial risks The IMF also flagged the risk of a sharp reassessment of artificial intelligence-related investment returns, which could reduce investment, trigger equity market corrections and tighten financial conditions.The report points to the need for economies to rebuild policy buffers and strengthen their capacity to withstand future shocks as higher borrowing costs and elevated public debt limit governments' room to respond.(Except for the headline, this article has not been edited by FPJ's editorial team and is auto-generated from an agency feed.)

India is projected to maintain a robust growth rate of 7% in both 2026 and 2027, bolstered by strong domestic demand and a thriving services sector, according to the International Monetary Fund. Positive revisions from the World Bank and OECD highlight resilience amid consumption patterns. However, challenges such as rising energy prices and geopolitical tensions could impact this trajectory, yet India's economic growth remains strong compared to other major nations.

IMF India Outlook: The IMF cited robust domestic demand and services activity in India despite elevated oil prices.

IMF India Outlook: The IMF cited robust domestic demand and services activity in India despite elevated oil prices.

IMF raises Indias FY growth forecast to but global risks persist

India’s upgraded outlook contrasts with a subdued medium-term global growth projection, as the IMF flags inflation and geopolitical risks