India Remains the Fastest‑Growing Major Economy, Though 2026 Forecast Edged Down to 6.4%

The IMF slightly lowered India’s growth forecast for fiscal year 2026 (FY2026‑27) from 6.5% to 6.4%, but India still ranks as one of the world’s fastest‑growing major economies. For FY2027, the IMF projects an acceleration to 6.7%.

The report points to strong private consumption and vibrant services activity as supporting India’s growth. Deniz Igan noted that recent data have come in better than expected, with high‑frequency indicators pointing to considerable resilience in overall activity. That said, the pass‑through of rising global oil prices to domestic fuel prices will act as a drag on the economy in 2026.

With a projected growth rate of 6.4% in 2026, India’s pace is more than double China’s 4.6%, underscoring the widening growth gap between Asia’s two largest economies. In a context of broad global slowdown, India’s economy—driven more by domestic consumption than by exports or energy imports—shows stronger capacity to withstand external shocks.