‘Key growth engine’: IMF hails India’s 7.8% growth, backs GDP estimate changes
The IMF has praised India's 7.8% GDP growth for the April-June quarter, citing strong performance in services and exports as key drivers. The organization also endorsed India's modernization of its macroeconomic statistical framework, including new industrial and producer price indices.
Why it matters
Positive validation from the IMF reinforces India's status as a major global economic growth engine and boosts investor confidence.
India’s economy has stayed on the growth track despite the energy price shock, with real GDP rising 7.8% in the April-June quarter. The IMF hailed the stronger-than-expected performance, saying that the growth was boosted by better-than-expected activity in services and exports.At a press briefing, IMF spokesperson Julie Kozack said, “India's real GDP in the second quarter grew by 7.8 per cent. That was above our staff's expectations and also the consensus among other observers. This upward surprise was driven by stronger-than-expected activity in the services sector and in exports.”“The outturn also underscores the resilience of the Indian economy despite the energy price shock. It also means that India does remain a key growth engine for the world,” she added.The 7.8% growth in real GDP for Q1 FY27, covering April-June, was higher than the Reserve Bank of India’s earlier estimate of 7%.
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