India among fastest growing major economies with GDP growth at 6.4%: IMF

India is set to maintain its position as one of the world's fastest-growing major economies, with the International Monetary Fund (IMF) projecting its GDP growth at 6.4% for 2026. This robust economic performance is underpinned by strong momentum in private consumption and the services sector.

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India remains among the fastest-growing major economies, with growth projected at 6.4 per cent, supported by strong momentum in private consumption and services activity.

The IMF's July 2026 World Economic Outlook (WEO) Update highlights that India's leading economic trajectory continues even as global growth faces headwinds. The report forecasts a slowdown in worldwide economic expansion to 3.0% in 2026, followed by a modest recovery to 3.4% in 2027. World trade volume growth is also expected to decelerate significantly from 5.0% in 2025 to 3.5% in 2026, before picking up to 4.3% in 2027.

These global economic dynamics are attributed to factors such as the front-loading of trade policies, the drag from tariffs, and the gradual adjustment of trade linkages and production chains through diversion and rerouting. In emerging markets and developing economies, growth is projected to slow to 3.8% in 2026, with an anticipated recovery to 4.5% in 2027.

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global growth faces a slowdown.

In contrast to India's strong performance, China's growth is projected to slow to 4.6% in 2026, influenced by higher oil prices and structural challenges. Conversely, Vietnam's growth forecast has been revised upward to 7.5%, and Malaysia is expected to grow at 4.7%, both benefiting from the global technology cycle. The United States is projected to grow at 2.3% in 2026 and 2.2% in 2027, largely stable from previous forecasts, supported by fiscal policy and technological advancements.

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global growth is projected to slow to 3.0 per cent in 2026 before recovering to 3.4 per cent in 2027.

However, the euro area faces a projected growth of 0.9% in 2026, a downward revision from April, due to a weak first quarter, elevated energy prices, and low consumer confidence. The United Kingdom's growth is expected to slow to 1.0% in 2026, while Japan's growth is anticipated to be 0.6%. Global inflation is also expected to pause its decline, rising to 4.7% in 2026, primarily driven by increased energy and food prices, before easing in 2027.

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World trade volume growth is also expected to decelerate sharply from 5.0 per cent in 2025 to 3.5 per cent in 2026 before recovering to 4.3 per cent in 2027.