Amid the fresh escalations in the Middle East, the International Monetary Fund (IMF) on Wednesday marginally lowered the growth projections for India to 6.4% from 6.5% earlier. In its World Economic Outlook update for the current year, IMF raised the GDP growth projections for the next fiscal year by 0.2% to 6.7%.
“India remains among the fastest growing major economies, with growth projected at 6.4 percent, supported by strong momentum in private consumption and services activity,” the IMF report said.
Further, the IMF has also marginally lowered its global growth projection for 2026 to 3.0%, cautioning that the outlook continues to be clouded by the conflict in the Middle East, increasing trade fragmentation and the possibility of a reassessment of market expectations surrounding artificial intelligence.
IMF said the global economy has so far avoided a steeper slowdown despite the war, as strong demand linked to the technology sector has helped offset the impact of reduced energy supplies caused by the conflict.
It expected the global growth to improve to 3.4% in 2027, although that would still remain below the 3.5% average recorded during 2024 and 2025.
The growth projection for the United States unchanged at 2.3% while raising its 2027 forecast marginally to 2.2% from 2.1%. For the euro area it has reduced growth estimate to 0.9% from the 1.1% projected in April, while keeping the 2027 forecast unchanged at 1.2%.
Further, Japan’s 2026 growth forecast was trimmed by 0.1 percentage point to 0.6%, although its projection for 2027 was revised up by the same margin to 0.7%.
IMF Lowers India’s Growth Projections To 6.4% Amid Fresh Middle East Escalations
