IMF data suggests India will outpace major rivals, maintaining a steady 6.4% expansion rate through the next two years.
Data from the International Monetary Fund indicates that India remains on track to be the fastest-growing large economy worldwide. According to the World Economic Outlook update released on 20 January 2026, the nation is projected to achieve growth rates of 6.4 percent in both the 2026-27 and 2027-28 financial years.
The organisation also upgraded its 2025-26 growth forecast to 7.3 percent, citing strong momentum and better-than-expected economic output. While expansion is expected to moderate slightly as temporary factors fade, inflation is predicted to return to target levels.
On a global scale, the report highlighted significant trade impacts and economic shifts:
- World GDP growth is held steady at 3.3 percent, though this masks underlying volatility caused by shifting trade policies.
- Headwinds from changing international trade regulations are currently being balanced by heavy investment in technology and artificial intelligence.
- The report warned that trade uncertainty and geopolitical tensions remain the primary risks that could disrupt global financial conditions.
- For comparison, the United States and China are expected to grow at 2.4 percent and 4.5 percent, respectively, in 2026.
Despite the positive outlook for India, the report underscored the necessity for globally coordinated policies to navigate trade-related risks and ensure long-term stability in the international market.
SOURCE – HINDUSTAN TIMES
