**Executive Summary**
This document is the response to Unstarred Question No. 1393 in Lok Sabha regarding IMF inflation ranking of India, to be answered on February 9, 2026. It clarifies that the IMF does not formally rank countries based on inflation levels, and details India's projected inflation. It also addresses the impact of the weakening Indian rupee on import prices and mentions duty exemptions and tariff reductions implemented by the government.
**Key Points / Main Content**
* **IMF Inflation Ranking:**
* The IMF does not formally rank countries based on inflation levels.
* IMF inflation projections for 198 countries are available in the World Economic Outlook (WEO), published in October 2025.
* India's projected consumer price inflation for 2026 is 4.0 per cent, which is also the target rate of inflation in India.
* **Impact of Weaker Rupee on Import Prices:**
* Currency depreciation can enhance export competitiveness and raise prices of imported goods.
* The overall impact of exchange rate depreciation on domestic prices depends on pass-through, elasticity of demand, and policy actions.
* The recent increase in gold and silver prices is largely driven by global price movements, not solely by the weakening rupee.
* **Government Measures:**
* Budget 2026-27 includes basic custom duty exemptions for imports of critical inputs or raw materials for domestic production.
* Tariff rate on all dutiable goods imported for personal use has been reduced from 20 per cent to 10 per cent.
**Impact Analysis**
**Stakeholder: Indian Economy**
* **Impact:** The document addresses India's inflation rate in relation to other countries and how government policies are trying to stabilise the economy.
* **Action Required:** No action required, but the Indian economy will depend on effective implementation of the mentioned government measures in the Budget 2026-27.
**Stakeholder: Importers**
* **Impact:** The reduction in tariff rates on goods imported for personal use, and custom duty exemptions for raw materials are relevant to importers.
* **Action Required:** Importers should take note of the updated tariff and duty rates to benefit from lower costs, where available.
**Stakeholder: Consumers**
* **Impact:** Reduced tariffs on personal goods can lead to lower prices for consumers.
* **Action Required:** Consumers should take note of the reduced prices on imported personal goods where applicable.
Key Entities Referenced
International Monetary Fund (IMF): Referenced for its inflation projections.
Ministry of Finance: The ministry answering the parliamentary question.
Budget 2026-27: Announcements regarding custom duties.
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF ECONOMIC AFFAIRS
LOK SABHA
UNSTARRED QUESTION NO. 1393
TO BE ANSWERED ON 09.02.2026/ Magha 20, 1947 (Saka)
IMF INFLATION RANKING OF INDIA
1393. THIRU D M KATHIR ANAND:
Will the Minister of FINANCE be pleased to state:
(a) whether it is a fact that according to the International Monetary Fund's (IMF) inflation projections
data for 190 countries for 2026, India ranks 60th in the high inflation index with an inflation rate
of 4.0, if so, the details thereof; and
(b) whether the weakening of the Indian rupee against the US dollar led to an increase in import prices,
consequently raising the prices of gold, silver and other imported goods, if so, the details thereof
along with the steps taken by the Government in this regard?
ANSWER
MINISTER OF STATE IN THE MINISTRY OF FINANCE
(SHRI PANKAJ CHAUDHARY)
(a) The International Monetary Fund (IMF) does not formally rank countries based on their inflation
levels. The latest inflation projections of the IMF for 198 countries are available in the World
Economic Outlook (WEO) published in October 2025, wherein India’s consumer price inflation
for the calendar year 2026 is projected as 4.0 per cent, which is also the target rate of inflation in
India.
(b) The depreciation of currency can enhance export competitiveness as well as raise the prices of
imported goods. However, the overall impact of exchange rate depreciation on domestic prices
depends on the extent of the pass-through, elasticity of demand for imported goods and the policy
actions. The recent increase in gold and silver prices is largely driven by global price movement
of these commodities rather than the weakening of the rupee. In the Budget 2026-27, the
Government has announced basic custom duty exemptions to the imports of several goods that are
critical inputs or raw material in the domestic production of various commodities and reduced the
tariff rate on all dutiable goods imported for personal use from 20 per cent to 10 per cent.
****