The International Monetary Fund (IMF) has projected India’s economy to grow at 6.5 per cent in FY27, reaffirming its position as the fastest-growing major economy in the world. The upward revision from its earlier estimate of 6.4 per cent reflects strong domestic demand, resilient exports, and supportive policy measures.
According to the IMF’s latest World Economic Outlook, India’s growth momentum remains robust despite global headwinds, including geopolitical tensions in West Asia and a slowdown in advanced economies. The report highlights that India’s economy continues to benefit from tariff reductions, structural reforms, and a strong carryover effect from FY26’s 7.6 per cent growth.
The IMF also noted that inflation in India is expected to rise to 4.7 per cent in FY27, compared to 2.1 per cent in FY26, driven by higher food and energy prices. Policymakers are expected to balance growth with inflation management to sustain economic stability.
India’s projection stands out against a trimmed global growth outlook, underscoring its role as a key driver of global economic expansion. The World Bank has also raised India’s FY27 growth forecast to 6.6 per cent, citing GST rate cuts and strong consumer demand as additional growth enablers.
