00:00India remains world's fastest-growing major economy.
00:03IMF projects India's growth at 7% in 2026.
00:08India outpaces China, United States and European economies.
00:11India's growth is 7%.
00:14China lags behind with 4.5%.
00:17So Modinomics maintains global momentum
00:19and this is what the IMF has now projected.
00:24It has projected global economic growth at 3.1% in 2026
00:29and 3.4% in 2027
00:31and global inflation is expected to reach 4.7%
00:35driven largely by higher energy and food prices.
00:39But India remains world's fastest-growing major economy
00:42as the IMF has projected India's growth at 7% in 2026.
00:47And Business Today's Karishma is now joining us
00:50with more details on this.
00:51Karishma, very good morning to you.
00:53So IMF has made this projection of India's growth at 7%.
00:57to help us understand this projection
01:00and also what are the factors that have contributed to this?
01:04Thank you very much.
01:06But this is very much on the expected lines.
01:08In fact, what Moody's HS&P a while ago
01:11and World Bank also estimated,
01:14looks like everybody has given an upward revision for India
01:18at least from its July 2026 forecast
01:23with almost a 60 basis point increase.
01:27And this comes against a weaker outlook
01:29for several other emerging markets like you have said.
01:32IMF says the stronger outlook is due to India's domestic demand
01:36and services activity.
01:37However, let's not forget that India is equally impacted
01:45by the global energy shock
01:46and higher energy prices will continue to have an impact
01:50on our growth rate in the future
01:53if at least this rate of hormones is not normalized.
01:57All right, Karishma, thank you for those details.
02:00So that's the projection by the IMF
02:03that India remains the fastest growing economy
02:06and it has projected India's growth at 7% in 2026.
02:10Now, what is important to note is that India has outpaced China,
02:14the United States and also the other European economies
02:17and its growth rate is at 7%.
02:20If we talk about China, China is lagging behind with 4.5%.
02:23So the growth rate for China is at 4.5%.
02:27In fact, United States and the other European economies
02:30are also far behind India.
02:33India's growth rate projection is at 7%
02:36despite the geopolitical tensions,
02:38despite the ongoing wars,
02:40despite the energy crisis that the world is witnessing.
02:46Despite that, Modinomics is maintaining the global momentum.
02:54So the IMF has also warned that the global economy remains resilient,
02:58but its resilience is becoming more fragile and uneven.
03:01Domestic demand supports India's growth.
03:04So that is what the IMF has cited.
03:08And the IMF also said that India's growth remains robust,
03:11supported by domestic demand and services activity
03:14despite higher oil prices.
03:16So the IMF has mentioned that how there was an energy crisis,
03:20how the oil prices were higher.
03:22But despite that, the domestic demand in India
03:25is what has led to this projection.
