Washington: According to the International Monetary Fund (IMF), India's economy is projected to expand by 6.5% in 2027, despite rising tensions in the Middle East.
This growth rate positions India as the fastest-growing major economy for the year 2026.
The IMF's World Economic Outlook report indicates a slight upward revision of 0.3 percentage points for 2026, primarily driven by the strong economic performance in 2025 and a significant reduction in US tariffs on Indian exports from 50% to 10%. This positive shift is expected to outweigh the negative effects stemming from the ongoing conflict in the Middle East.
The IMF also forecasts that growth will stabilize at 6.5% in 2027.
Assuming the conflict is relatively brief, global growth is anticipated to experience a modest slowdown, with projections of 3.1% for 2026 and 3.2% for 2027, down from an estimated 3.4% in 2025.
At market exchange rates, global output is expected to grow by 2.6% in both 2026 and 2027.
The slight downward adjustment in global growth forecasts is attributed to ongoing supportive factors that are partially mitigating the adverse impacts of the conflict, including reduced tariffs, existing policy support, and carryover effects from stronger-than-expected economic results at the end of 2025 and the beginning of 2026.
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