IMF Asia-Pacific Outlook Projects India Growth at 7% for FY27, FY28
Why in the news
On 15 October 2026, during the IMF-World Bank Annual Meetings in Bangkok, the IMF released its Regional Economic Outlook (REO) for Asia and Pacific, titled “Resilience Amid Uncertainty: Can it be Sustained?”, projecting India’s growth at 7% and backing India’s revised GDP series.
Key facts
- Asia-Pacific growth: 5.0% in 2025, 4.8% in 2026 (raised by 0.4 percentage point from April) and 4.4% in 2027.
- India: projection raised to 7.0% for both 2026-27 and 2027-28, led by private consumption and services.
- GDP base revision: Krishna Srinivasan, Director of the IMF Asia and Pacific Department, termed India’s new GDP series, with the financial year ending March 2023 as base, a welcome development consistent with IMF advice.
- Rupee: pressure was linked to global interest rates, risk appetite and oil prices, not economic weakness.
- Inflation: central banks were advised to be ready to raise rates if inflation persists; governments were advised to give targeted relief rather than broad fuel subsidies.
- Global growth: 3.1% in 2026 and 3.4% in 2027.
| Group | 2026 projection |
|---|---|
| Asia-Pacific | 4.8% |
| Advanced Asia | 3.2% |
| Emerging Asia | 5.1% |
| Low-income economies | 3.7% |
About the Regional Economic Outlook
The IMF publishes REOs for different regions alongside its global outlook. The Asia and Pacific edition is prepared by the Asia and Pacific Department, headed by Krishna Srinivasan. Risks flagged this time include prolonged Middle East tensions, a correction in AI hardware stocks and strong El Niño conditions.
Exam angle
- Remember the title and the venue: Bangkok, IMF-World Bank Annual Meetings 2026.
- India’s GDP base year now ends March 2023 (2022-23).
- India: 7.0% for FY27 and FY28; Asia-Pacific: 4.8% (2026), 4.4% (2027).