IMF World Economic Outlook October 2026: India FY27 Growth at 7%
Why in the news
The International Monetary Fund released its October 2026 World Economic Outlook (WEO) on 13 October during the IMF-World Bank fall meetings in Bangkok, Thailand. It raised growth forecasts for both India and the world.
Key facts
- India FY27: growth forecast raised to 7% from 6.4%, an increase of 60 basis points, on strong domestic demand.
- India FY28: forecast raised by 30 basis points to 7%.
- India inflation: CPI inflation seen averaging 5% in FY27 and 4.4% in FY28.
- Global growth: 3.1% in 2026 (3.0% in the July update) and 3.4% in 2027.
- Global inflation: 4.7% in 2026, easing to 4.1% in 2027.
- Concentration: only 32 countries now account for 95% of global growth, against 54 in April.
| Economy | 2026 | 2027 |
|---|---|---|
| World | 3.1% | 3.4% |
| United States | 2.3% | 2.3% |
| Euro area | 1.1% | 1.2% |
| China | 4.5% | – |
| India (fiscal year) | 7% (FY27) | 7% (FY28) |
About the IMF and WEO
The World Economic Outlook is the IMF’s flagship forecast of global and national growth and inflation. The IMF is headed by Managing Director Kristalina Georgieva; Silvana Tenreyro is its Director of Research. India remains the fastest-growing major economy in the forecast. The week before, the RBI and the World Bank had both raised their FY27 projections for India to 7.1%.
Exam angle
- The IMF’s India forecast is stated for the fiscal year (FY27 = 2026-27).
- Note the venue: Bangkok hosted the 2026 IMF-World Bank meetings.
- Compare forecasts: IMF 7%, RBI and World Bank 7.1% for FY27.