Strong domestic demand powers India's steady growth, IMF reports

New Delhi, October 15 – The International Monetary Fund highlighted India’s ability to sustain solid growth amid a backdrop of global uncertainty. In a briefing in Bangkok, IMF Asia‑Pacific chief Krishna Shrinivasan stressed that robust internal demand and a healthy services sector kept the economy expanding at a healthy clip.

India posted a real GDP increase of 7.8 % in the April‑June quarter, prompting the Fund to lift its growth estimate to 7 % for both the current and the next fiscal year, with a medium‑term average of roughly 6.9 %.

Key drivers identified by the IMF include a large and growing consumer market, favourable demographic trends, and the continuation of structural reforms that improve business climate and data quality. The Ministry of Statistics and Programme Implementation’s work on refining national accounts received specific commendation.

The IMF also addressed concerns over recent rupee depreciation, clarifying that exchange‑rate movements are affected by global interest‑rate shifts, market sentiment and oil‑price dynamics, rather than signifying a loss of economic strength.

With many Asian peers seeing weaker outlooks, India’s performance stands out as a positive surprise, reinforcing its status among the world’s leading economies.