IMF said- India is the growth engine of the world: GDP growth was better than expected at 7.8%, Indian economy remained strong despite the energy crisis.

India’s economy has maintained its fast pace even amidst the energy crisis and global challenges. In the first quarter of the current financial year i.e. April-June, the country’s real GDP growth has been recorded at 7.8%.

Praising India’s better performance, the International Monetary Fund (IMF) has said that this growth has been much better than expected on the basis of strong services sector and better exports.

IMF praised Indian economy

IMF spokesperson Julie Kozak told the press briefing that India’s GDP growth of 7.8% in the April-June quarter is much higher than her estimates and the expectations of market experts. He said that better performance in services and exports has given impetus to this growth.

According to Julie Kozak, this performance shows that despite the energy price shock, the Indian economy is completely strong and India remains a major growth engine for the world.

Growth rate was higher than RBI’s estimate

This figure of 7.8% for the first quarter was more than the previous estimate of 7% by the Reserve Bank of India (RBI). According to data from the Ministry of Statistics and Program Implementation (MoSPI), the country’s real GDP stood at Rs 81.36 lakh crore in the quarter, compared to Rs 75.46 lakh crore in the same period of the last financial year (FY26).

Support for new way of measuring GDP

The IMF has welcomed the changes made by India in its GDP estimation system and its modernization. Julie Kozak said the latest data includes a new Index of Industrial Production (IIP) and Producer Price Index (PPI) series. According to the IMF, these new changes will further improve the accuracy and data quality of GDP statistics.

Questions raised on marks and amendments

However, amidst these strong figures, a debate has also started regarding GDP calculation. Former Finance Secretary Subhash Chandra Garg has raised questions on the growth rate of 7.8% and has pointed to the amendment made in the current GDP of last year.

According to Garg, last year’s figure was reduced from Rs 86 lakh crore to Rs 80 lakh crore. Had this revision not taken place, growth at current prices would have been only around 2.6%. Despite this, IMF believes that the new index and modern system will improve the country’s GDP figures.

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