The IMF has raised India’s growth forecast to 7% for FY2026–27. But what’s powering the economy — and what could slow it down?In its October 2026 World Economic Outlook, the International Monetary Fund points to resilient domestic demand and strong services activity as key drivers of India’s growth. The forecast puts India ahead of global growth, projected at 3.1% in 2026 and 3.4% in 2027.But there are risks. Geopolitical tensions, oil supply disruptions and elevated energy prices could weigh on the global economy — and India, as a major oil importer, remains exposed. At the same time, a surge in AI-related hardware trade and investment could support growth, although the benefits may not be shared equally.Source: IMF World Economic Outlook, October 2026.
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