NEW DELHI: The International Monetary Fund (IMF) has upgraded India’s growth forecast for the current year to 7%, from 6.4%, making it the fastest-growing major economy.The agency joins others – including the World Bank, ADB, S&P and Moody’s – in upgrading its projections after official data estimated first-quarter growth at 7.8%. Most global agencies have forecast 6.9-7% growth in the current fiscal year. IMF’s latest World Economic Outlook estimated inflation at 5% this year with per capita output projected to rise 4.7% in 2026 compared with 5.2% last year.It said that the global economy, projected to grow 3.4% in 2026, has stayed resilient despite multiple shocks in recent years. “India remains among the fastest-growing major economies, with growth in 2026 projected at 7%. This reflects stronger-than-expected momentum, supported by resilient domestic demand and robust services activity,” the multilateral agency said.India along with Germany has seen the highest revision, with Saudi Arabia forecast to contract 3.3% this year, seeing a five-percentage-point cut in the projection.“India stands out with upward revisions, reflecting sustained momentum and growing evidence of stronger growth potential supported by favorable demographic dynamics, a large and expanding domestic market, and continued structural reforms,” IMF said.The report highlighted efforts to diversify trade flows and pointed to India’s trade deals with the UK and the European Union that will lower tariffs and reduce barriers to services trade, and “facilitate adjustments to recent trade policy changes”. US tariff actions have resulted in a flurry of trade deals across the globe, with India too moving ahead with FTAs that have been on the negotiating table for years.
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