India has shown ‘quite a lot of resilience’ to oil price shock, says IMF as it welcomes stronger statistical framework
Acknowledging India's strength in weathering increased energy prices, the International Monetary Fund has praised the country's economic stability during a tumultuous global landscape. The real GDP growth for the April-June quarter notably exceeded initial expectations. While the IMF appreciates advancements in statistical frameworks, it calls for persistent improvements in data quality.…
The International Monetary Fund (IMF) has praised India's resilience amid the recent surge in oil prices, according to its spokesperson Julie Kozack. Even as the IMF continues to assess the impact of higher energy costs on the Indian economy, Kozack highlighted that India entered the energy price shock at a relatively stronger economic position.
The IMF's assessment underscores India's status as a growth engine for the world, with the country's real gross domestic product (GDP) expanding by 7.8% in the April-June quarter of fiscal year 2027 (FY27), surpassing both IMF expectations and estimates from other forecasters.
The growth was driven by stronger-than-expected activity in the services sector and exports, according to Kozack. This upward surprise highlights India's resilience in the face of the energy price shock. The Ministry of Statistics and Programme Implementation (MoSPI) reported that India's real GDP for the quarter was ₹81.36 lakh crore, up from ₹75.46 lakh crore in the same period of the previous year.
Kozack welcomed recent changes to India's statistical framework, including the introduction of a new Index of Industrial Production (IIP) and Producer Price Index (PPI) series. These improvements should help enhance the accuracy of India's GDP estimates. She emphasized the IMF's support for the ongoing efforts to modernize the country's macroeconomic statistics and encouraged further strengthening of India's statistical system.
The IMF will provide updated forecasts for India in October, taking into account the latest energy-price shock.
Written by urgent.news from The Economic Times - Economy's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
