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IMF to Upgrade India's Growth Forecast, Calls It Global Growth Engine

The International Monetary Fund has indicated it will likely upgrade India's growth forecast in its upcoming January update, citing stronger-than-expected third-quarter economic data. IMF spokesperson Julie Kozack stated that India remains a key growth engine for the global economy, with robust domestic consumption underpinning its performance. The IMF had previously estimated India's growth for fiscal year 2025-26 at 6.6 percent, but recent data suggests an upward revision is imminent. This reflects continued international confidence in India's resilient economic fundamentals amid challenging global conditions.

Key Points: IMF to Upgrade India Growth Forecast, Sees Global Engine

  • Stronger-than-expected Q3 growth
  • Forecast upgrade likely this month
  • Robust domestic consumption driving economy
  • Key driver of global economic growth
2 min read

IMF to upgrade India outlook later this month, calls it as key growth engine for global economy: IMF Spokesperson

IMF spokesperson says India's strong Q3 growth will lead to an upward revision in its forecast, reinforcing India's role as a key global growth driver.

"India is a key growth engine for the world. - Julie Kozack, IMF Spokesperson"

New Delhi, January 16

India continues to remain a key growth engine for the global economy, with its economic performance staying strong and resilient, according to the International Monetary Fund.

IMF spokesperson Julie Kozack, who also heads the Communications Department (COM) at the IMF, highlighted India's growing importance during a media briefing on Thursday.

She noted that the latest economic data from India has come in stronger than expected, reinforcing the country's role as a major driver of global growth.

She stated, "So what we have seen in India is that India is a key growth engine for the world. India's growth in 2025, when we did our Article IV staff report, we had estimated growth for fiscal year 25-26 at 6.6 per cent, which is based on the strong consumption growth".

She further pointed out that since the release of the Article IV report, India's third-quarter growth has turned out to be stronger than anticipated. This development has increased the likelihood that the IMF may revise its growth forecast for India upwards in the near term.

"What we have seen since then is that the third quarter growth in India came out stronger than expected, and that makes it likely that we will be upgrading our forecast going forward," Kozack said.

She added that the IMF is set to release its January real update in the coming days, during which a revised growth number for India will be announced. "We have our January real update coming in the next few days, so we will have a revised growth number for India at that time," she stated.

Highlighting the broader picture, Kozack said that the IMF's overall assessment of India remains positive. According to her, the country has consistently played a key role in supporting global growth, even amid challenging international economic conditions.

"The bottom line for us on India is that it has been a key driver of global growth, and growth has been quite robust in India," she said.

The IMF's latest remarks reflect continued confidence in India's economic fundamentals, with strong domestic consumption acting as a major pillar of growth. The upcoming update is now keenly awaited, as it may further strengthen India's position as one of the fastest-growing major economies in the world.

- ANI

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Reader Comments

P
Priya S
While the numbers look good, I hope this growth is inclusive. We need to ensure that the benefits reach the rural economy and MSME sector, not just the big cities. The forecast upgrade is welcome, but let's focus on sustainable and equitable development.
R
Rohit P
Being called a 'key growth engine' by the IMF is a big deal! This should boost investor confidence further. Our digital infrastructure and manufacturing push seem to be paying off. Jai Hind!
S
Sarah B
As someone working in the fintech space here, I can feel the momentum. There's a genuine buzz and optimism. However, we must remain cautious about global headwinds that could affect exports.
V
Vikram M
Strong consumption growth is a double-edged sword. It's good for GDP now, but are we saving and investing enough for the long term? We need to build more world-class Indian brands, not just be a market for foreign goods.
K
Kavya N
Proud moment for India! This recognition is a result of the hard work of millions of our entrepreneurs, farmers, and workers. Let's keep the momentum going. The world is watching.

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