The International Monetary Fund (IMF), in its October World Economic Outlook (WEO), has revised upward India’s economic growth projection by 60 basis points (bps) to 7.0% for the fiscal year 2026-27 (FY27) and by 30 bps to 7.0% for FY28, compared with its July 2026 WEO update. It highlighted that India remains among the fastest-growing major economies, adding that the country’s growth remained robust despite higher oil prices.
According to the October WEO, the growth reflects stronger-than-expected momentum, supported by resilient domestic demand and robust services activity. The IMF noted that India stands out with upward revisions, reflecting sustained momentum and growing evidence of stronger growth potential, supported by favourable demographic dynamics, a large and expanding domestic market, and continued structural reforms.
Meanwhile, China’s economic growth is projected to slow to 4.5% in 2026, as higher global oil prices, prolonged uncertainty, and structural headwinds are expected to weigh on economic activity. Policy support is expected to prevent a sharper slowdown.
In the United States, economic growth is projected at 2.3% in both 2026 and 2027. The projection for 2026 is unchanged from April, while the forecast for 2027 has been revised upward by 20 bps. Economic activity is supported by robust private consumption, fiscal policy, accommodative financial conditions, continued technology-related business investment (net of its substantial import content), and strong productivity. The country’s status as a net energy exporter is expected to limit the war’s direct impact on its economy.
