New Delhi: India’s economy is expected to grow a tad faster at 6.5 percent in 2027 despite escalating tensions in West Asia, the International Monetary Fund (IMF) said on Tuesday.

The 6.5 percent growth projection makes India the fastest-growing major economy in 2026.

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“For 2026, growth is revised upward moderately by 0.3 percentage point (0.1 percentage point relative to January) to 6.5 percent, led by positive contributions from the carryover of the strong 2025 outturn and the decline in additional US tariffs on Indian goods from 50 to 10 percent, which outweigh the adverse impact of the Middle East conflict," IMF said in its World Economic Outlook released here.

"Growth is projected to stay at 6.5 percent in 2027,” it said.

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Under the assumption in the reference forecast that the war turns out to be relatively short-lived, global growth is expected to slow down modestly, the IMF said.

At 3.1 percent for 2026 and 3.2 percent for 2027, the forecasts mark a deceleration from the estimated 3.4 percent achieved in 2025.

At market exchange rates, world output is projected to grow by 2.6 percent in both 2026 and 2027, it said.

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The relatively modest downward revision to global growth in the reference forecast relative to the January 2026 WEO Update owes to continued tailwinds partially offsetting the negative shocks from the conflict, including lower tariffs, preexisting policy support, and carryover from stronger-than-expected outturns at the end of 2025 and the first quarter of 2026 in some cases.

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