The Indian economy is expected to remain resilient in the coming years, with the nation's gross domestic product is set to expand by 7 percent and 6.5 percent in the 2025 and 2026 fiscal years, respectively, an analysis showed. 

The latest report from the International Monetary Fund (IMF) showed that India's expected economic growth is the highest in the world, with the country's GDP expansion much higher than advanced economies like the United States and the United Kingdom. 

India's projected GDP growth is also higher than the potential expansion figures of emerging economies like China and Saudi Arabia. 

The projection made by the IMF falls in line with a previous forecast made by the World Bank which projected Indian economy to grow by 7 percent in FY2025 and FY2026. 

Economic Growth Projections

According to IMF, the economy of the United States will grow by 1.8 percent in both 2024 and 2025. 
Meanwhile, the economy of the United Kingdom is expected to witness an expansion of 1.1 percent in 2024, before accelerating to 1.5 percent in 2025. 

In China, IMF projected an economic growth of 4.8 percent and 4.5 percent in 2024 and 2025, respectively. 

According to IMF, Saudi Arabia led the Gulf Cooperation Council region in terms of projected growth, with the Kingdom's GDP is expected to expand by 1.5 percent in 2024, before accelerating to 4.6 percent in 2025. 

Global Outlook

The UN financial agency said that global economic growth is expected to remain stable yet underwhelming. 

According to IMF, the world will witness an overall GDP expansion of 3.2 percent in both 2024 and 2025. 

"Well, we have a lot of good news that inflation is coming down as we had expected. And in most countries, we are expecting it to be back to targets. At the same time, the global economy has been quite resilient and we are expecting growth rate to be 3.2 both this year and next," said IMF Deputy Director of Research, Petya Koeva-Brooks. 

She added: "The not so good news, however, is that in the medium term, we're still expecting lackluster growth of a little bit over three." 

IMF also warned that potential geopolitical tensions including conflict in the Middle East, ongoing wars in Ukraine and Gaza could affect the growth of the economy in the future. 

"The main downside risks that we see are that we see an escalation of geopolitical conflict or we see a ratcheting up of trade protectionism, or that we see more weakening in labor markets than what we expect in the baseline, or that we see a renewed bout of financial market turbulence," added Koeva-Brooks.