India has been a key driver of global growth, and growth has been quite robust in India, Kozack said.
Under IMF’s Article IV Staff Report, India’s economic growth for the fiscal year 2025-20 26 was forecasted at 6.6 percent, based on strong consumption growth. “What we have seen since then is that the third-quarter growth in India came out stronger than expected. And that puts some that makes it likely that we will be upgrading our forecast going forward. So, we have our January WEO update coming in the next few days. So, we will have a revised growth number for India at that time,” Kozack said during a press briefing on Thursday.
She noted that the IMF looks at India as a key growth engine for the world.
The United Nations upgraded India’s economic growth projection for 2026 to 6.6%, from 6.4% estimated earlier, and forecast 6.7% for 2027. The international watchdog attributed the forecast revision to resilient private consumption and strong public investment, which are expected to largely offset the impact of steep US tariffs on Indian exports.
Recent policy measures, including income tax cuts and goods and services tax (GST) rationalisation, and lower interest rates, are expected to provide additional momentum to near-term growth, the UN said.
IMF’s global growth forecast
The IMF’s latest economic forecasts due next week will show the global economy’s continued resilience to trade shocks and “fairly strong” growth, IMF Managing Director Kristalina Georgieva told Reuters. On the January forecasts portrayal after the upgrade in October, Georgieva said: “More of the same – that the world economy is remarkably resilient, that trade shock has not derailed global growth, that risks are more tilted to the downside, even if performance now is fairly strong.”
The UN agency is expected to release its World Economic Outlook update on January 19.
Georgieva told Reuters risks were focused on geopolitical tensions and rapid technological shifts. Things could turn out well, she said, but the global economy could also face significant financial distress if the huge resources flowing into artificial intelligence did not result in promised productivity gains.