The International Monetary Fund (IMF) has updated its World Economic Outlook, projecting global economic growth to reach 3.3% in 2026, a slight upward revision from its previous forecasts. This improved outlook is largely attributed to robust technology investments, particularly in artificial intelligence, and resilient demand, especially in North America and Asia. However, the IMF simultaneously issued a stern warning regarding the persistent and escalating risks from trade tensions and geopolitical uncertainties, which could significantly undermine global economic stability. IMF Chief Economist Pierre-Olivier Gourinchas highlighted that while the global economy has shown resilience in absorbing past tariff shocks, renewed trade conflicts, such as potential tariff threats between the US and European nations, pose a major risk to business confidence and investment worldwide. The report emphasizes that despite some easing of tariff pressures, policy uncertainty, particularly around trade policy, could lead to market volatility and disrupt supply chains. For India, the IMF offered a positive outlook, significantly raising its economic growth forecast for fiscal year 2026 (FY26) to 7.3%, an increase of 0.7 percentage points from earlier estimates. This upgrade reflects better-than-expected performance in recent quarters and strong economic momentum, positioning India as a key global growth engine, although growth is anticipated to moderate in subsequent years. The overall assessment suggests a global economy navigating a complex landscape of technological optimism and geopolitical fragility, with central bank independence and cautious fiscal policies deemed crucial for sustaining macroeconomic stability.