IMF says recent data from India has been stronger than expected, driven by resilient consumption
The International Monetary Fund (IMF) is expected to upgrade India’s economic growth outlook later this month, even as it reaffirmed that the country remains one of the most important engines of global growth.
At a media briefing on Thursday, IMF spokesperson Julie Kozack said India’s recent economic performance has surprised on the upside, reinforcing its role as a major driver of the world economy at a time when many countries are grappling with slowing growth.
“So what we have seen in India is that India is a key growth engine for the world,” Kozack said.
She noted that in the IMF’s latest Article IV staff report, the Fund had projected India’s growth at 6.6 per cent for fiscal year 2025-26, largely underpinned by strong domestic consumption.
However, Kozack indicated that fresh data suggests the economy has performed better than anticipated, prompting the IMF to reassess its projections.
“The bottom line for us on India is that it has been a key driver of global growth, and growth has been quite robust in India,” she added.
The IMF’s updated outlook, due later this month, is now being closely watched by policymakers, investors, and global financial institutions. An upward revision would further strengthen India’s position as one of the fastest-growing major economies in the world.
Economists say India’s resilience stems from steady household spending, a government infrastructure push, digital expansion, and a gradual strengthening of manufacturing under the Make in India initiative.
At a time when advanced economies face high interest rates and sluggish demand, India’s growth trajectory continues to stand out. The IMF’s endorsement also adds weight to India’s narrative as a stable growth hub amid global uncertainty.
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