International Monetary Fund (IMF) raises India’s FY27 growth forecast to 6.5%

Key facts

• The International Monetary Fund (IMF) raised India’s growth forecast for FY27 to 6.5% from 6.4% projected in January and 6.2% in October last year.
• Growth is expected to remain steady at 6.5% in 2027-28, keeping India the fastest-growing economy in both years.
• India’s GDP growth for 2025-26 is estimated at 7.6% based on government projections.
• The IMF projects India’s inflation to rise to 4.7% in FY27 from 2.1% last year, then ease to 4% in 2027-28.
• India’s current account deficit is estimated at 2% of GDP in 2026-27 and 1.6% in 2027-28.
• The Reserve Bank of India (RBI) has projected 6.9% growth for this fiscal.
• The World Bank raised India’s growth outlook for this fiscal to 6.6% from 6.3%.
• The Asian Development Bank (ADB) revised India’s growth estimate to 6.9% from 6.5%.