IMF Recognizes India as a Vital Growth Engine, Supports Changes to GDP Estimates
India’s economy has demonstrated robust growth, with real GDP increasing by 7.8% in the April-June quarter of FY27. The International Monetary Fund (IMF) praised this performance, attributing the growth to stronger-than-expected activity in the services sector and exports. IMF spokesperson Julie Kozack noted that this figure exceeded both the IMF’s expectations and the consensus among other observers.
Kozack emphasized the resilience of the Indian economy, stating that it remains a key growth engine for the global economy despite challenges such as the energy price shock. The reported growth rate surpassed the Reserve Bank of India’s earlier estimate of 7%. According to data from the Ministry of Statistics and Programme Implementation (MoSPI), real GDP for the quarter reached Rs 81.36 lakh crore, compared to Rs 75.46 lakh crore in the same period of FY26.
IMF backs changes to GDP estimates
The IMF also expressed support for recent changes to India’s GDP estimation system. Kozack highlighted that the latest GDP release incorporated a new index of industrial production and a new producer price index series, which are expected to enhance the accuracy of GDP estimates.
She commended India’s efforts to modernize its macroeconomic statistics and encouraged continued improvements in the statistical framework and data quality. Kozack stated, “We welcome these important steps that India is taking to modernise its macroeconomic statistics.”
GDP figures face questions
The IMF’s positive remarks come amid scrutiny regarding India’s latest GDP figures and the revisions that have occurred. Former finance secretary Subhash Chandra Garg raised concerns about the reported 7.8% growth, citing a revision of the previous year’s current GDP from Rs 86 lakh crore to Rs 80 lakh crore.
Garg argued that without this revision, growth at current prices would have been approximately 2.6%, raising further questions about the reliability of India’s GDP calculations. Despite these concerns, the IMF reiterated that the latest numbers reflect the resilience of India’s economy.
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