India's growth for FY27 expected to be 6.5% according to IMF.

According to the International Monetary Fund, India's economy is expected to see a slight increase in growth, reaching 6.5 per cent in 2027. This is despite the current tensions in West Asia, as mentioned in their World Economic Outlook report released in Washington on Tuesday. This projection places India as the fastest-growing major economy in 2026, with a moderate upward revision of 0.3 percentage points from the previous estimate.

This can be attributed to the positive contributions from the strong economic performance in 2025 and the decrease in additional US tariffs on Indian goods from 50 to 10 per cent. However, the IMF also acknowledges the negative impact of the Middle East conflict on India's growth. Looking ahead, the IMF predicts that India's growth will stay at 6.5 per cent in 2027.

This forecast is based on the assumption that the war in the Middle East will not have a prolonged effect on the global economy. In fact, the IMF expects a modest slowdown in global growth for both 2026 and 2027, with estimated rates of 3.1 and 3.2 per cent respectively. This is a decrease from the 3.4 per cent achieved in 2025.

The report also highlights that at market exchange rates, world output is projected to grow by 2.6 per cent in both 2026 and 2027. This downward revision in global growth is relatively moderate, as the IMF believes that there are still some positive factors at play. These include lower tariffs, existing policy support, and carryover effects from the strong economic performance in late 2025 and early 2026.

In other news, Orissa POST, Odisha's top English daily, continues to be the go-to source for the latest updates and developments in the region. Their commitment to providing accurate and timely news has solidified their position as the number one English newspaper in the state.