India GDP Growth: The International Monetary Fund (IMF) has raised India’s GDP growth forecast to 7 per cent for 2026-27, up from 6.4 per cent in July. This comes just a week after the Reserve Bank of India (RBI) hiked its GDP growth estimate to 7.1 per cent for this year.
The revision in estimate comes on the back of a “stronger-than-expected momentum, supported by resilient domestic demand and robust services activity”.
IMF Raises India’s Growth Estimate: India remains the world’s fastest-growing major economy at 7.0% for both 2026 and 2027.
Significantly, the upward revision in India’s growth forecast comes despite geopolitical uncertainties such as the US-Iran war and the Russia-Ukraine war, both of which have implications for an energy-dependent country like India. GDP growth for 2027-28 is also projected at 7 per cent, up from the July estimate of 6.7 per cent. The average price of crude oil — across Brent, Dubai Fateh, and West Texas Intermediate — will be $95.74 per barrel in 2026, up 41 per cent from 2025, according to the IMF’s forecasts. In 2027, the oil price is assumed to decline around 9 per cent to $87.39.
“India’s growth remained robust, underpinned by domestic demand and services, despite higher oil prices,” the multilateral agency added.
