The IMF projects global growth at 3.1% in 2026 and 3.4% in 2027, while India’s growth forecast for both years has been raised to 7%
Rerouted energy supplies, inventory drawdowns and renewable alternatives have cushioned price shocks
But prolonged disruptions in West Asia could strain supplies and push prices higher
Sustained investment in artificial intelligence is boosting global activity and trade. Yet lofty valuations raise the risk of financial market disruption if expectations fall short
Just 32 economies now account for 95% of global growth, compared with 54 in April. Uneven exposure to AI and energy shocks is reshaping growth prospects
Elevated public debt and AI investment needs could tighten financial conditions, divert capital from emerging markets and amplify financial stability risks
India’s strong growth outlook masks vulnerabilities to energy disruptions and volatile capital flows
Policy agility will be vital to sustain growth and preserve macroeconomic stability