The International Monetary Fund (IMF) has once again described India as the fastest growing large economy in the world. IMF has estimated that India's Gross Domestic Product (GDP) growth rate will be 7 percent. However, this rate is less than the rapid growth of 7.7 percent in the last fiscal year.
The IMF (International Monetary Fund) projects India's GDP growth at 7.0% for 2026 and 2027.
The 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 is expected to reach 4.7%, driven largely by higher energy and food prices.”
— ANI (@ANI) October 13, 2026
The International Monetary Fund (IMF) in its 'World Economic Outlook' report released on Tuesday has increased India's GDP growth estimate for the current fiscal year 2026-27 from 6.4 percent to 7 percent. The global economy is expected to grow at the rate of 3.1 percent in 2026 and 3.4 percent in 2027. However, due to rising energy and food prices, global inflation is likely to reach 4.7 percent.
According to the 'World Economic Outlook' report, the growth rate of the advanced economy is expected to increase slightly to 2.1 percent this year. In 2025 this rate was 2 percent. Then it is expected to reduce to 1.9 percent in 2027. In its forecast, the IMF assumes that the supply of oil and natural gas through the Strait of Hormuz will resume by March and the pace of demand related to Artificial Intelligence (AI) will slow down to some extent. IMF has also increased India's economic growth forecast for the financial year 2027-28 by 0.3 percentage points to 7 percent. This shows the strength of the country's economic expansion.
According to the report, the US economic growth rate is expected to remain stable at 2.3 percent. China, the world's second largest economy, is expected to grow at the rate of 4.5 percent this year. This rate is less than the 5 percent growth rate of 2025. This estimate is in accordance with the official target set by the Chinese government. Additionally, the economies of the 21 European countries that use the euro are expected to grow by 1.1 percent this year and 1.2 percent in 2027.
The IMF's change in India's economic growth forecast comes after the recent monetary policy review meeting of the Reserve Bank of India (RBI), in which the RBI had raised India's GDP growth forecast for the current financial year 2026-27 to 7.1 percent.
Also read-
Temples changed India's travel trend