The IMF raised India's GDP growth forecast to 7.0% for FY27 and FY28, highlighting strong domestic demand and structural reforms. Global growth revised to 3.1% in 2026 amidst geopolitical and technological shifts The World Bank and the Reserve Bank of India both last week raised India’s GDP growth projection for FY27 to 7.1%. India remains among the fastest-growing major economies, the IMF said in its latest World Economic Outlook. “This reflects stronger-than-expected momentum, supported by resilient domestic demand and robust services activity,” India stands out among emerging market economies with upward revisions, which reflects sustained momentum, the IMF said. Faster growth this year is also reflective of the growing evidence of stronger growth potential supported by favourable demographic dynamics, a large and expanding domestic market, and continued structural reforms, the IMF said. The IMF projected CPI inflation in India to average 5.0% in FY27 and then moderate to 4.4% in FY28. The Fund’s inflation forecast is lower than RBI’s, which last week raised its inflation projection by 20 basis points to 5.2%. CPI inflation rose to a near 2-year high of 5.54% in September. The Fund also seen India’s current account deficit (CAD) widening to 1.5% of GDP in FY27 from 0.7% in FY26. The CAD is then seen easing to 1.3% in FY28, as per IMF’s projections. Economists sees India’s CAD widening this financial year because of higher energy import bill caused by the surge in global crude oil prices and large foreign portfolio investment outflows. (ICE NEW DELHI)

Fonte notizia: Financial Express