India projected to grow 7% in 2026, fastest among major economies, IMF says

The International Monetary Fund’s World Economic Outlook Update projects India’s gross domestic product to expand by 7 % in the 2026 calendar year, keeping it the fastest‑growing major economy. Growth is expected to moderate to 6.4 % in 2027. The IMF credits the pace to strong private consumption, robust services‑sector activity and resilient domestic demand.

For the fiscal year, the IMF forecasts 6.4 % growth in FY2026‑27 and 6.7 % in FY2027‑28, after a modest 0.1‑percentage‑point downgrade for the current fiscal year and a 0.2‑point upgrade for the next. India’s FY2025‑26 growth was 7.7 %. These projections are broadly in line with the World Bank’s estimates of 6.6 %/7.2 % and other banks’ forecasts.

Globally, the IMF expects overall growth of about 3 % in 2026, rising to 3.4 % in 2027. By comparison, China is projected at 4.6 % this year, slipping to 4.1 % next year; the United States at 2.3 %/2.2 %; and the European Union at 0.9 %/1.2 %. The fund notes limited impact from commodity‑price and inflation pressures and highlights AI‑driven technology demand as a supportive factor.