India a key growth engine for global economy, outlook upgrade later this month, says IMF

The IMF's latest remarks reflect continued confidence in India's economic fundamentals, with strong domestic consumption acting as a major pillar of growth

• IMF says India's economic growth remains strong and resilient
• India's Q3 growth exceeded expectations, IMF may revise forecast upwards
• IMF to announce updated growth numbers for India in its January report

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India continues to remain a key growth engine for the global economy, with its economic performance staying strong and resilient, according to the International Monetary Fund (IMF).

IMF spokesperson Julie Kozack, who also heads the Communications Department (COM) at the IMF, highlighted India's growing importance during a media briefing on Thursday.

She noted that the latest economic data from India has come in stronger than expected, reinforcing the country's role as a major driver of global growth.

She stated, "So what we have seen in India is that India is a key growth engine for the world. India's growth in 2025, when we did our Article IV staff report, we had estimated growth for fiscal year 25-26 at 6.6 per cent, which is based on the strong consumption growth".

She further pointed out that since the release of the Article IV report, India's third-quarter growth has turned out to be stronger than anticipated. This development has increased the likelihood that the IMF may revise its growth forecast for India upwards in the near term.

"What we have seen since then is that the third quarter growth in India came out stronger than expected, and that makes it likely that we will be upgrading our forecast going forward," Kozack said.

She added that the IMF is set to release its January real update in the coming days, during which a revised growth number for India will be announced. "We have our January real update coming in the next few days, so we will have a revised growth number for India at that time," she stated.

Highlighting the broader picture, Kozack said that the IMF's overall assessment of India remains positive. According to her, the country has consistently played a key role in supporting global growth, even amid challenging international economic conditions.

"The bottom line for us on India is that it has been a key driver of global growth, and growth has been quite robust in India," she said.

The IMF's latest remarks reflect continued confidence in India's economic fundamentals, with strong domestic consumption acting as a major pillar of growth. The upcoming update is now keenly awaited, as it may further strengthen India's position as one of the fastest-growing major economies in the world.