Impact of Middle East War: IMF Still Expresses Confidence in India's Economy

In its July 2026 World Economic Outlook, the IMF revised India's GDP growth forecast for fiscal year 2026-27 down from 6.5% to 6.4%, while raising the estimate for 2027-28 to 6.7%. This revision reflects the effects of the Middle East war, which has kept pressure on the Indian economy, but improvement is expected in the next fiscal year.