IMF praises India's 7.8% GDP growth and economic resilience

The International Monetary Fund (IMF) has commended the resilience of the Indian economy following reports that its real GDP grew by 7.8% in the first quarter of the 2026-27 fiscal year. IMF spokesperson Julie Kozack noted that this growth exceeded staff expectations and consensus among observers.

According to the IMF, the upward surprise was primarily driven by stronger-than-expected activity in the services sector and increased exports. Kozack highlighted that the economic performance underscores India's resilience despite the pressures of energy price shocks and high crude oil costs, which typically impact major importers.

While some economists and former officials raised questions regarding the reliability and calculation methods of the 7.8% figure, Prime Minister Narendra Modi defended the data. He characterized the growth as a sign of increasing national confidence, stating that the country has transitioned from ‘policy paralysis’ to ‘policy dynamism’ and is now viewed globally as a rapidly growing major economy.