India’s economy has stayed on the growth track despite the energy price shock, with real GDP rising 7.8% in the April-June quarter. The IMF hailed the stronger-than-expected performance, saying that the growth was boosted by better-than-expected activity in services and exports.At a press briefing, IMF spokesperson Julie Kozack said, “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.”“The outturn also underscores the resilience of the Indian economy despite the energy price shock. It also means that India does remain a key growth engine for the world,” she added.The 7.8% growth in real GDP for Q1 FY27, covering April-June, was higher than the Reserve Bank of India’s earlier estimate of 7%. Data from the Ministry of Statistics and Programme Implementation (MoSPI) showed real GDP at Rs 81.36 lakh crore in the quarter, compared with Rs 75.46 lakh crore in the same period of FY26.
IMF backs changes to GDP estimates
Alongside its positive assessment of India’s growth, the IMF also welcomed changes made to the country’s GDP estimation system.Kozack said the latest GDP release included a new index of industrial production and a new producer price index series. According to her, both should help improve India’s GDP estimates.“I can say that the latest GDP release, the one that we just talked about for Q2, it incorporated both a new index of industrial production. It also included a new producer price index series, and those two new series should help improve India’s GDP estimates,” Kozack said.She said the IMF welcomed India’s efforts to modernise its macroeconomic statistics and encouraged the authorities to keep strengthening the statistical framework and data quality.“And we welcome these important steps that India is taking to modernise its macroeconomic statistics. And of course, we encourage the authorities to continue to further strengthen the statistical framework and data quality along the lines that they’re progressing,” she said.
GDP figures face questions
The IMF’s comments come amid a debate over India’s latest GDP numbers and the revisions behind them. Former finance secretary Subhash Chandra Garg had questioned the reported 7.8% growth in the April-June quarter, pointing to a revision in the previous year’s current GDP from Rs 86 lakh crore to Rs 80 lakh crore.Garg had said that without the revision, growth at current prices would have been around 2.6%, adding to questions over India’s GDP calculations.The IMF also said the latest numbers showed the resilience of India’s economy. It welcomed the changes to the GDP estimation system, noting that the new industrial production index and producer price index series would help improve GDP estimates.