IMF Lauds India’s Economic Resilience, Reforms and Fiscal Prudence
India’s strong economic fundamentals and policy measures have helped the country withstand global energy and financial shocks, with the International Monetary Fund (IMF) on Thursday reaffirming its position as one of the world’s fastest-growing major economies.
Speaking at a press briefing in Bangkok, Krishna Srinivasan, Director of the IMF’s Asia and Pacific Department, said India entered the recent energy shock with robust economic growth and fiscal discipline. He added that the country had responded effectively to external challenges.
The IMF has also raised its growth forecast for India following stronger-than-expected economic performance in the April-June quarter.
The Fund now expects India’s economy to grow by 7 per cent this year and next year, while maintaining a medium-term growth trajectory of around 6.9 per cent.
Official data showed that India’s real GDP grew by 7.8 per cent in the April-June quarter.
According to the IMF’s latest World Economic Outlook, India continues to outperform many major economies, supported by resilient domestic demand, strong services activity, favourable demographics, a large and expanding domestic market, and ongoing structural reforms.
Srinivasan also said recent pressure on the rupee should not indicate economic weakness. He explained that global interest rates, investor sentiment and oil prices influence exchange rates.
As a major oil importer, India has faced the effects of the global energy shock. However, Srinivasan stressed that currency movements alone do not determine an economy’s success or failure.
The IMF also endorsed India’s revised GDP calculation methodology. Srinivasan described the changes as consistent with international best practices and the Fund’s previous recommendations.
He also commended the Ministry of Statistics and Programme Implementation (MoSPI) for its efforts to improve national accounts statistics.
Discussing the regional economic outlook, Srinivasan said India had delivered stronger-than-expected results, even as global uncertainties had moderated growth prospects across several Asian economies.