India’s economy is expected to expand by 7 per cent in both FY27 and FY28, projected the International Monetary Fund (IMF) on Tuesday. However, IMF cautioned that the global economic outlook faces increasing risks with rising food and energy costs along with geopolitical tensions. It added that this could affect the resilience of economies across the world.
In the IMF’s latest assessment, it raised the global growth forecast for this year to 3.1 per cent, up from the 3 per cent in July. Despite the upgrade, the pace remains modest compared to the 3.5 per cent recorded by the world economy in 2025.
“The global economy remains resilient, but that resilience is becoming more fragile and more uneven,” the IMF said in its October 2026 World Economic Outlook.
IMF on low-income developing countries
Following the release of the latest data, the IMF stated that the low-income developing countries were the most vulnerable to the impacts of the energy crisis amid the US-Iran war. It added that many had “no choice” but to spend less or face debt restructuring.