India’s economic growth expected to be 6.5% in current Financial Year, says IMF
An extended war in West Asia could dampen growth and drive inflation higher globally.
New Delhi, Apr 15: Even as the actual impact of the West Asia war unravels, the International Monetary Fund (IMF) has marginally raised India’s growth forecast for the current financial year, pegging it at 6.5%.
The upward revision is to the tune of 0.1% from the January estimates of the IMF.
In its latest World Economic Outlook and Global Financial Stability Report, the IMF has noted that the conflict in West Asia has pushed up oil prices, shipping costs and inflation expectations, which could exert near-term pressure on prices and weigh on global growth momentum.
At the same time, it warned that prolonged tensions could intensify these risks further.
The West Asia war and the resultant massive disruption in the global flow of energy from that region have already started pinching most nations across the world.
India, which imports a huge quantity of oil and gas from the West Asian region, has also been affected and there is a likelihood that the adverse impact will increase in the future.
Globally, the economic outlook is less optimistic.
The IMF forecast for the global growth during the financial year 2026-27 is 3.1 per cent, reduced from 3.3 per cent.
The reason cited is the heightened uncertainty in energy markets and trade routes due to the conflict.
It also cautioned that an extended war could dampen growth further and drive inflation higher.
With regard to India, other institutions have offered slightly higher projections.
The World Bank expects India’s economy to grow at 6.6 per cent in FY27, while the Reserve Bank of India has projected growth of 6.9 per cent for the same period. (BVI)
