international The Monetary Fund (IMF) on Tuesday said India’s economy is likely to grow at 6.5 percent this year despite rising tensions in West Asia. The IMF, in its ‘Global Economic Outlook’ report, estimated that India will remain the fastest growing economy among major economies with a growth rate of 6.5 percent this year.
IMF increased growth forecast for India in the year 2026
The International Monetary Fund said for India, “The growth forecast for the year 2026 has been increased slightly by 0.3 percentage points.” The major factors behind this are the impact of strong performance by 2025 and reduction of US tariff on Indian goods from 50 percent to 10 percent. These factors have largely offset the negative impact of tensions in West Asia.” According to the report, if the ongoing conflict in West Asia remains relatively short-lived, there could be a slight decline in the growth rate of the global economy. Along with this, the Monetary Fund has estimated the growth rate of the Indian economy to remain at 6.5 percent in the year 2027.
Global growth rate will be 3.1 percent this year
Additionally, the IMF projects global growth to be 3.1 percent in 2026 and 3.2 percent in 2027, down from a projected 3.4 percent in 2025. Based on market exchange rates, global output is projected to grow by 2.6 percent in both 2026 and 2027. The IMF said the limited reduction in global growth projections compared to January 2026 this time is because the impact of negative shocks arising from the conflict is being moderated to some extent by positive factors – such as lower tariffs, policy support already in place and better-than-expected economic performance in late 2025 and the first quarter of 2026.
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