India will continue to be the fastest growing big economy in the world with the International Monetary Fund (IMF) forecasting growth at 6.4% in 202627 and 2027 28 in its latest World Economic Outlook (WEO) update. The IMF has also revised the growth forecast of 2025-26 to 7.3, thus matching the earlier estimates of the growth figure issued by the National Statistics Office (NSO), which had set the GDP growth to 7.4 per cent in the same fiscal year.
In January 2021, the IMF announced an upward revision of the growth prognosis of India by 0.7 percentage points in its update to the October 2025 WEO report, indicating that the country has performed better than expected in the third quarter and has a robust economic momentum in the fourth. The fund has observed that even with the growth still being expected to be strong, it is bound to slow down in the next few years as the cyclical and temporary factors dissipate.
The IMF projected growth in India to be revised high up to 7.3 percent in 202526 due to the improved results in the second half of the year, although it is expected to slow down to 6.4 percent in 2026 and 2027. Nonetheless, the moderation will not stop India as the country will remain a pivotal growth driver in the world despite the moderation.
The IMF also gave a good projection regarding inflation, indicating that price pressures in India will fall back to nearly target levels in the year 2025, mostly owing to the dampening food prices. This assessment is generally in tandem with the projections of the institutions like the Reserve Bank of India.
The IMF at a global level said that it had no significant changes to its outlook. The 3.3% growth in global GDP will not change between 2025 and 2024 and will continue to be the stable growth rate in 2026, which will be the case of the major economies.
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