India, Oct. 13 -- The International Monetary Fund (IMF) has increased the GDP growth forecast for the fiscal year 2026-27 (FY27) to 7%, up from its previous forecast of 6.4%, on account of healthy domestic demand and strong services sector performance. The forecast was made in IMF's World Economic Outlook, published in October 2026.

IMF has also improved its growth forecast for FY28 to 7%, up from 6.7% forecast previously. This implies that the Indian economy may keep up its good momentum for the next two successive financial years, despite high oil prices and geopolitical tensions.

The forecast comes against the backdrop of better-than-anticipated economic growth performance in India, where the GDP growth rate is estimated at 7.8% year...