The International Monetary Fund (IMF) has described India as a key driver of global growth after the economy expanded 7.8% in the first quarter of the current fiscal year. The stronger-than-expected growth was supported by robust services activity and exports, despite the economy facing an energy price shock, said Julie Kozak, Director of the IMF’s Communications Department.
Amid ongoing debate over the credibility of India’s latest GDP estimates, the IMF has welcomed efforts to strengthen and modernise the country’s statistical framework. Kozak noted that the latest GDP release incorporated a new Index of Industrial Production (IIP) and Producer Price Index (PPI) series, which are expected to improve the accuracy and reliability of GDP estimates.
The IMF is also closely monitoring the impact of higher oil prices on India’s economy. Kozak acknowledged that rising energy costs pose challenges for all oil-importing countries, but noted that India has so far demonstrated considerable resilience in absorbing the energy price shock.