India economy shows resilience with 7.8% GDP growth, IMF reports

The International Monetary Fund (IMF) reported that India's real GDP grew by 7.8 per cent in the first quarter (April–June) of FY 2026–27, exceeding both IMF staff expectations and market consensus.

IMF spokesperson Julie Kozack attributed this upward surprise to stronger-than-expected activity in the services sector and exports. The growth underscores the resilience of the Indian economy despite an energy price shock linked to the Iran war, which typically pressures the fiscal positions and balance of payments of energy importers.

Kozack noted that the shock occurred while India was in a strong economic position, maintaining the country's status as a key global growth engine. The IMF also addressed discussions regarding India's GDP estimation system, welcoming recent changes aimed at improving data integrity and transparency.