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IMF: India's Strong Growth Makes It World's Key Economic Engine

The International Monetary Fund has identified India as a key engine for global economic growth. IMF Communications Director Julie Kozack stated that India's third-quarter growth performance was stronger than anticipated. This robust performance, largely driven by domestic consumption, makes an upward revision to the IMF's growth forecast likely. The Fund's updated World Economic Outlook, containing revised projections for India, is scheduled for release next week.

Key Points: IMF Calls India Key Global Growth Engine, Forecast Upgrade Likely

  • Q3 growth stronger than expected
  • Forecast upgrade likely next week
  • Growth anchored in strong domestic demand
  • IMF projects 6.6% growth for FY 2025-26
2 min read

India is key growth engine for the world: IMF

IMF says India's Q3 growth exceeded expectations, making it a key driver of global growth. Revised forecast with upgrade due next week.

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

Washington, Jan 16

India is the key growth engine for the world, the International Monetary Fund said on Thursday, noting that the country's third-quarter growth came out stronger than expected.

"What we have seen in India is that India is a key growth engine for the world," Julie Kozack, Director of IMF's Communications Department, told reporters at a news conference here on Thursday.

She was responding to a query on the IMF's assessment of India's growth story in 2025.

Kozack said the IMF's most recent assessment, conducted as part of its Article IV Staff Report, had projected India's growth for the 2025-26 fiscal year at 6.6 per cent, largely anchored in strong domestic consumption.

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

The IMF's World Economic Outlook update is scheduled for release next week.

"We will have a revised growth number for India at that time. But I think the bottom line for us on India is that it has been a key driver of global growth, and growth has been quite robust," Kozack said.

"What we have seen since then is that the third quarter growth in India came out stronger than expected," he said, adding that this development increases the likelihood of an upward revision to the IMF's growth forecast.

"That makes it likely that we will be upgrading our forecast going forward," she said.

The IMF is scheduled to release an updated edition of its World Economic Outlook next week, which will include revised projections for India and other major economies.

"We will have a revised growth number for India at that time," Kozack said.

She emphasised that the IMF's overall assessment of India remains positive, underscoring the country's role in supporting global economic expansion amid uncertainty in many regions.

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

The World Economic Outlook update, due for release next week, is expected to provide a clearer picture of how recent economic data have reshaped the Fund's projections for India, as well as the broader global economy.

- IANS

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Reader Comments

S
Sarah B
As someone working in the tech sector in Bangalore, I can feel this growth momentum. There's definitely more optimism and investment flowing in. However, we must ensure this growth is inclusive and reaches all sections of society, not just urban centers.
V
Vikram M
While the IMF praise is welcome, let's not get carried away. The 6.6% projection is good, but we need to focus on sustainable growth. Inflation control and managing fiscal deficit are crucial. The upgrade next week will be interesting to watch.
P
Priya S
Jai Hind! 🚀 This makes me so proud. Our entrepreneurs and small businesses are the real heroes driving this consumption story. From local kirana stores going digital to startups innovating, the energy is palpable. Let's keep this momentum going!
R
Rohit P
Good to hear, but I hope this "growth engine" status helps with practical issues like reducing fuel prices and making housing more affordable for the middle class. The numbers should reflect in common people's lives.
M
Michael C
Working with Indian partners in manufacturing, I've seen firsthand how efficient and scalable operations have become. India's demographic dividend and digital push are creating a perfect storm for growth. The world is watching.

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