The International Monetary Fund’s October review forecasts India’s economy growing 7% in 2026-27 and 2027-28. This shows India stands out due to strong domestic demand and policy reforms. While many trade deals started, the report said India needs exports to boom. Global competitiveness remains the key focus for faster economic expansion.
Summary
The latest set of International Monetary Fund (IMF) forecasts has notched up India's growth to 7% this fiscal year and the next. While this pace is reassuring, we must relentlessly pursue reforms aimed at sharpening an export edge.
The International Monetary Fund's (IMF) October review of the global economy forecasts India's economy growing 7% in 2026-27 as well as 2027-28, up from its earlier projections of 6.4% and 6.7%, respectively. Given the turbulence around the world, such a pace would be impressive, at least in relative terms.
For China, the IMF lowered its growth outlook to 4.5% in 2026 and 4% in 2027. That reflects weakness in its domestic economy as much as the size that China's output has already achieved: at nearly $20 trillion in 2025, roughly two-thirds of America's.
More broadly, the IMF report shows that the global economy has held up despite this year's energy and other shocks. But this resilience is becoming more fragile and uneven, it noted.
India, though, "stands out" thanks to its strong domestic economy, favourable demographics and sustained policy reforms. While this is good, the country needs exports to boom for faster economic expansion. Accordingly, many trade deals have been struck, but what counts, as always, is global competitiveness.
As with the latest GST reforms, India's policy focus is turning to that objective. For best outcomes, it needs to be a relentless pursuit.