IMF Praises Indias Resilience Amid Global Economic Challenges

New Delhi, October 15 (Daily Kiran) : The International Monetary Fund (IMF) has recognized India’s robust economic foundation and policy measures, noting the country’s ability to navigate global energy and financial shocks effectively. During a press briefing in Bangkok, Krishna Srinivasan, director of the IMF’s Asia and Pacific Department, highlighted India’s strong economic growth and financial discipline amid recent energy crises.

Following a better-than-expected economic performance in the April-June quarter, the IMF has revised its growth forecast for India. The organization now expects the Indian economy to expand at a rate of 7% for both the current and upcoming fiscal years, with a medium-term growth rate projected at approximately 6.9%. Official data indicates that the actual GDP growth rate for the April-June quarter was recorded at 7.8%.

According to the latest “World Economic Outlook” report from the IMF, India is maintaining a distinctive position among major economies. Key drivers behind this include strong domestic demand, robust activity in the service sector, favorable demographics, a large and continuously expanding domestic market, and ongoing structural reforms.

Srinivasan also addressed recent pressures on the Indian rupee, stating that such fluctuations should not be interpreted as signs of economic weakness. He emphasized that exchange rates are influenced by various factors, including global interest rates, investor sentiment, and crude oil prices.

As a major oil-importing nation, India has felt the impact of global energy shocks. However, Srinivasan noted that the success or failure of an economy cannot be judged solely by currency movements. The IMF has also endorsed India’s revised GDP calculation methodology, asserting that the changes align with international best practices and previous IMF recommendations. He commended the efforts of the Ministry of Statistics and Programme Implementation (MoSPI) to enhance national accounting statistics.

Discussing the regional economic landscape, Srinivasan remarked that while growth prospects for several Asian economies have weakened amid global uncertainties, India has delivered a positive surprise with its performance.