The International Monetary Fund (IMF) has upgraded India's growth forecast for FY27 to 6.5%, marking a 0.1 percentage point increase from its January estimate. This adjustment comes amidst escalating geopolitical tensions, particularly the ongoing conflict in the Middle East, which the IMF warns could negatively impact global economic momentum and increase inflation. The IMF attributes India's resilience to strong domestic demand and a carryover effect from robust growth in 2025, alongside a significant reduction in tariffs on Indian goods from the United States. For FY26, the growth forecast has also been raised to 6.5%, driven by these favorable conditions. However, the IMF cautions that global growth is expected to decline due to geopolitical shocks, with emerging and developing economies slowing to 3.9% in 2026. Inflation is projected to rise temporarily before easing, with global inflation expected to increase from 4.1% in 2025 to 4.4% in 2026, before falling back to 3.7% in 2027. The report emphasizes that the global economic outlook is increasingly influenced by geopolitical conflicts and financial market volatility, with risks skewed towards a potential downturn.