IMF raises India's growth forecast to 7%, praises economic resilience

The International Monetary Fund has raised its growth forecast for India to 7 per cent for both the current and next fiscal year. The IMF highlighted India's strong economic fundamentals, which it said enable the country to effectively manage external pressures and shocks.

IMF officials noted that recent currency fluctuations do not reflect economic failure, but rather normal market dynamics. They attributed India's resilience to ongoing structural reforms and robust domestic demand, which have positioned the economy to weather global headwinds.

While acknowledging India's progress, the IMF cautioned that geopolitical tensions and fiscal pressures remain risks to sustained growth. The assessment underscores confidence in India's macroeconomic management and capacity to navigate near-term uncertainties.