IMF calls India the world’s key growth engine after third-quarter growth exceeds expectations; updated 2025–26 forecast expected soon.
The International Monetary Fund (IMF) declared India as the world’s primary economic engine, noting that the country’s third-quarter growth surpassed expectations.
“What we have seen in India is that India is a key growth engine for the world,” Julie Kozack, Director of the IMF’s Communications Department, said to reporters during a press conference held here on Thursday.
She was answering a question about the IMF’s evaluation of India’s 2025 growth story.
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“What we have seen since then is that the third quarter growth in India came out stronger than expected,” Kozack said, adding that it is likely the IMF will be upgrading its forecast moving forward. The IMF’s most recent assessment, carried out as part of its Article IV Staff Report, had projected India’s growth for the 2025–26 fiscal year at 6.6%, largely anchored in strong domestic consumption.
Next Monday, the IMF will release its World Economic Outlook report.
“At that point, we will have an updated growth figure for India. “What we have seen since then is that the third quarter growth in India came out stronger than expected,” Kozack said, adding that this development increases the likelihood of an upward revision to the IMF’s growth forecast. “That makes it likely that we will be upgrading our forecast going forward,” she said. As for India, “I think the bottom line for us is that it has been a key driver of global growth, and growth has been quite robust.”
Next week, the IMF is expected to publish an updated version of its World Economic Outlook that will contain updated estimates for India and other significant economies.
“We will have a revised growth number for India at that time,” Kozack stated.
She emphasized that despite uncertainties in several areas, the IMF’s overall evaluation of India is still favorable, highlighting the nation’s contribution to global economic growth.