India expected to remain world's fastest-growing major economy, says IMF

India is projected to record economic growth of 7% in both 2026-27 and 2027-28, maintaining its position as the world's fastest-growing major economy, according to the International Monetary Fund's latest forecasts released on Tuesday.

The projections indicate that India's growth momentum could remain strong even as the temporary economic boost from income tax cuts and the rationalisation of the Goods and Services Tax (GST) begins to fade.

The outlook comes as several economies comparable to India, particularly energy-importing countries and those outside the ongoing technology boom, face sluggish growth and wider macroeconomic disruptions.

Growth momentum expected to outlast policy-led boost

The IMF's projections suggest that India's expansion may be sustained beyond the immediate effects of recent policy measures. Income tax cuts and GST rationalisation have provided support to economic activity, but the forecast points to continued growth even as these cyclical tailwinds weaken.

India's projected 7% growth in each of the next two financial years would keep it ahead of other major economies, reinforcing its position as a key driver of global economic expansion.

IMF outlook adds weight to India's GDP growth figures

The latest projections also carry significance amid a debate over the statistical credibility of India's GDP figures for the June quarter. The IMF's assessment of sustained growth offers support to the broader outlook for the Indian economy and challenges claims that the reported expansion lacks statistical integrity.

The contrast with other economies is notable. Countries that depend heavily on imported energy, as well as those not benefiting from the current technology-led boom, are facing economic headwinds and macroeconomic uncertainty, while India is expected to maintain a comparatively strong growth trajectory.