Washington: India’s economy is expected to grow a tad faster at 6.5 per cent in 2027 despite escalating tensions in West Asia, the International Monetary Fund (IMF) said on Tuesday.
The 6.5 per cent growth projection makes India the fastest-growing major economy in 2026.
“For 2026, growth is revised upward moderately by 0.3 percentage point (0.1 percentage point relative to January) to 6.5 per cent, led by positive contributions from the carryover of the strong 2025 outturn and the decline in additional US tariffs on Indian goods from 50 to 10 per cent, which outweigh the adverse impact of the Middle East conflict,” the IMF said in its World Economic Outlook released here.
“Growth is projected to stay at 6.5 per cent in 2027,” it said. Under the assumption in the reference forecast that the war turns out to be relatively short-lived, global growth is expected to slow down modestly, the IMF said.
At 3.1 per cent for 2026 and 3.2 per cent for 2027, the forecasts mark a deceleration from the estimated 3.4 per cent achieved in 2025.