RAS question
By how much did the IMF World Economic Outlook (April 2026) revise India's FY27 GDP growth forecast?
Correct answer: (A) Up to 6.5 per cent.
The IMF World Economic Outlook of April 2026 revised India's FY27 GDP growth forecast up to 6.5 per cent.
Explanation
The answer is 6.5 per cent because the April 2026 World Economic Outlook placed India's growth at that level for FY27. The Week reported that India's economy was expected to grow at 6.5 per cent in 2027, with growth projected to stay at 6.5 per cent in 2027. This matters for the question because the forecast was not a downgrade or a flat 6.0 per cent estimate; it was an upward revision to 6.5 per cent. The exam-relevant implication is that at this level, India retained its position as the fastest-growing major economy despite global headwinds.
Why the other options are wrong
- (B) Down to 5.8 per cent is wrong because the IMF-linked report places India's FY27 growth projection at 6.5 per cent, not below 6 per cent.
- (C) Held flat at 6.0 per cent is wrong because the forecast was 6.5 per cent, and it was an upward revision rather than an unchanged estimate.
- (D) Up to 7.1 per cent is wrong because the FY27 IMF projection was 6.5 per cent, not above it.
Concept
This tests current macroeconomic forecasting under the Indian Economy syllabus, especially growth estimates by international institutions. RAS often asks such figures because they connect headline GDP projections with India's relative position in the global economy.