India’s 7.8% growth highlights resilience despite energy shock: Julie Kozack, IMF

India's economy continued to grow robustly despite the recent surge in energy prices, with real GDP increasing by 7.8% in the April-June quarter, according to the International Monetary Fund (IMF). The IMF praised the stronger-than-expected performance, attributing the growth to better-than-anticipated activity in the services sector and exports.

IMF spokesperson Julie Kozack stated, "India's real GDP in the second quarter grew by 7.8 per cent. That was above our staff's expectations and also the consensus among other observers. This upward surprise was driven by stronger-than-expected activity in the services sector and in exports."

Kozack emphasized that the growth "underscores the resilience of the Indian economy despite the energy price shock," reinforcing India's status as a "key growth engine for the world." The April-June quarter real GDP for FY27 was higher than the Reserve Bank of India's earlier estimate of 7%. The Ministry of Statistics and Programme Implementation (MoSPI) reported real GDP at Rs 81.36 lakh crore for the quarter, compared to Rs 75.46 lakh crore for the same period in FY26.

In addition to its positive assessment of India's growth, the IMF welcomed changes made to the country's GDP estimation system. Kozack highlighted that the latest GDP release incorporated a new industrial production index and a new producer price index series, which she believed would improve India's GDP estimates. She expressed support for India's efforts to modernize its macroeconomic statistics, encouraging the authorities to continue strengthening the statistical framework and data quality.