The International Monetary Fund has praised India’s resilient economy, noting a stronger-than-expected 7.8% growth in the second quarter, driven by robust services and exports despite soaring energy costs.
The International Monetary Fund has said India is emerging as one of the main supports of world growth, after the country posted stronger-than-expected second-quarter expansion of 7.8%.
Julie Kozack, who heads the IMF’s communications department, said the result came in ahead of both the Fund’s own forecasts and broader market expectations. She said the momentum was powered by a firmer-than-anticipated performance in services and exports, helping to offset pressure from a spike in energy costs.
Kozack said the latest figures also pointed to the Indian economy’s resilience at a time when higher oil prices have been weighing on many import-dependent countries. India, one of the world’s largest crude buyers, has been hit by the global rise in energy costs, which can affect its import bill, current account balance and public finances.
The Fund also welcomed changes to India’s macroeconomic data, saying the latest gross domestic product release included a new industrial production index and a revised producer price index series. According to the IMF, those updates should improve the quality of future growth estimates. Updated projections for India are due in the Fund’s October World Economic Outlook, and Kozack said the IMF was continuing to monitor the impact of dearer oil closely.
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