Washington, Oct 16 — The International Monetary Fund (IMF) on Thursday reaffirmed its confidence in India’s economic resilience, describing the country’s fundamentals as “pretty strong” with robust growth, moderating inflation, and a well-managed fiscal deficit.
“India continues to be the fastest-growing major economy. We have India growing at 6.6% this year. Growth is good, inflation is coming down, and the fiscal deficit is well-managed,” said Krishna Srinivasan, Director of the IMF’s Asia and Pacific Department.
Srinivasan noted that India’s economy remains steady despite the recent 50 per cent US tariffs on certain imports, citing the Goods and Services Tax (GST) reforms as a key driver for boosting domestic consumption and demand. He added that a potential trade agreement between India and the United States could further strengthen New Delhi’s growth outlook.
“If India reaches a trade agreement with the US, when tariffs are lower, there’s an upside potential to growth next year,” he said. On energy imports, Srinivasan highlighted that India’s strategy to diversify export and import markets would help safeguard the economy against external shocks.
IMF Managing Director Kristalina Georgieva also praised India’s reform-driven progress, saying the country “substantially contributes to global growth.” She credited India’s investments in infrastructure, digital systems, and road connectivity for injecting strong growth momentum.
“India is one of the fastest-growing economies and contributes significantly to global growth because it has pursued very significant reforms,” Georgieva said.
In its latest World Economic Outlook, the IMF revised India’s 2025 growth forecast upward to 6.6 per cent — an increase of 0.2 percentage points — noting that strong first-quarter performance has more than offset the impact of US tariff hikes on Indian imports.
