Archive · 19 Jan 2026
IMF Projects India as Fastest-Growing Major Economy
The International Monetary Fund (IMF) says India will keep growing faster than any other big country in the next two years.
They think India's economy will grow by 7.3% in 2025, then 6.4% in 2026 and 2027.
This is much better than the rest of the world, which is expected to grow by about 3.3% in 2025 and 2026, and then a bit less in 2027.
The US will grow by 2.4% in 2026, and China by 4.5%.
The IMF also says that even though there are problems with trade and politics, the world economy is doing okay because of new technology like artificial intelligence (AI).
They warn that AI could also cause problems if it doesn't work as well as people hope.
Overall, the IMF thinks the world economy is strong but needs to be careful about these risks.
India is projected to grow by 7.3% in 2025, 6.4% in 2026, and 6.4% in 2027, making it the fastest-growing major economy.
Global economic growth is expected to be 3.3% in 2025 and 2026, and 3.2% in 2027.
The US economy is projected to grow by 2.4% in 2026, while China's growth is expected to be 4.5% in 2026.
The IMF highlights that AI investment is driving economic growth, particularly in advanced economies like the US.
Global inflation is projected to decline from 4.1% in 2025 to 3.8% in 2026 and 3.4% in 2027.
- Who
- International Monetary Fund (IMF)
- What
- India's economic growth projection and global economic outlook
- When
- January 2026
- Where
- Global
- Why
- To provide insights into economic trends and projections for the coming years
Optimistic View
Cautious View
Economic Growth
Optimistic View
Optimists believe that India's strong domestic demand, public investment, and private capital expenditure will sustain robust growth, making it the fastest-growing major economy.
Cautious View
Cautious observers note that growth is expected to moderate to 6.4% in 2026 and 2027 as cyclical and temporary factors wane, indicating potential future slowdowns.
Global Trade
Optimistic View
Supporters argue that the global economy's resilience, driven by AI investment, will offset trade headwinds and support continued growth.
Cautious View
Critics warn that persistent trade tensions, geopolitical conflicts, and supply-chain disruptions pose significant risks to global economic stability.
- Reporting Organization
- International Monetary Fund (IMF)
- India's GDP Growth 2025
- 7.3%
- India's GDP Growth 2026
- 6.4%
- India's GDP Growth 2027
- 6.4%
- Global GDP Growth 2025
- 3.3%
- Global GDP Growth 2026
- 3.3%
- Global GDP Growth 2027
- 3.2%
- US GDP Growth 2026
- 2.4%
- China GDP Growth 2026
- 4.5%
- Euro Area GDP Growth 2026
- 1.3%
- Global Inflation 2025
- 4.1%
- Global Inflation 2026
- 3.8%
- Global Inflation 2027
- 3.4%
- India's Inflation Target
- 4% (with a margin of 2%)
Sources
Davos 2026: Globalisation isn’t over it’s splintering into a multi nodal trade system, says WEF
DAVOS 2026: Global value chains enter era of structural volatility, says WEF
Global supply chains enter era of structural volatility: WEF
From efficiency to resilience: WEF reports global supply chains entering an age of permanent volatility
IMF Raises India's GDP Growth Projection to 7.3 pc for FY26
IMF raises 2026 global growth forecast to 3.3% as AI boom offsets trade risks
IMF raises India's GDP growth projection to 7.3% for FY26
IMF Flags Resilient 2026 Outlook Despite Trade Headwinds, Bets on AI Boom
