The International Monetary Fund (IMF) has raised India’s growth forecast for 2026 to 7%, an upward revision of 0.6 percentage point from its July 2026 projection. The revision reflects stronger-than-expected economic momentum, supported by resilient domestic demand and robust services activity.

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In its latest World Economic Outlook, titled Resilience Under Strain, Urgent Choices, the IMF projects India’s economy to grow at 7% in 2027 as well. The forecast places India among the fastest-growing major economies despite rising global uncertainty, higher energy prices and the economic impact of the Middle East conflict.

India’s projected growth for 2026 remains below the 7.8% recorded in 2025, according to the report. The IMF has also raised its 2026 projection by 0.5 percentage point compared with its April forecast. On a calendar-year basis, it projects growth of 7.4% in 2026 and 7% in 2027.

However, the global economic outlook remains challenging. The IMF expects world output growth to slow to 3.1% in 2026 from 3.5% in 2025, before recovering to 3.4% in 2027. Growth across emerging market and developing economies is projected to ease to 3.7% in 2026, down from 4.5% in 2025.

The report also highlights risks linked to energy supplies and geopolitical tensions. Its baseline scenario assumes that the Strait of Hormuz will reopen in March 2027, followed by a broad return to prewar conditions by October 2027. Even under this scenario, energy prices are expected to remain above prewar levels.

For India, strong domestic demand and services activity provide support, but the outlook remains exposed to higher energy costs and global disruptions. The revised forecast signals confidence in India’s growth momentum while underlining the importance of monitoring external risks.