{"id":285739,"date":"2025-11-27T07:46:09","date_gmt":"2025-11-27T07:46:09","guid":{"rendered":"https:\/\/www.newsbeep.com\/uk\/285739\/"},"modified":"2025-11-27T07:46:09","modified_gmt":"2025-11-27T07:46:09","slug":"growth-remains-robust-imf-backs-indias-outlook-lauds-strong-fundamentals-contained-inflation","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/uk\/285739\/","title":{"rendered":"‘Growth remains robust’: IMF backs India\u2019s outlook; lauds strong fundamentals & contained inflation"},"content":{"rendered":"

\"'Growth India\u2019s economic outlook remains firmly positive, with the International Monetary Fund (IMF<\/a>) pointing to strong policy foundations, resilient growth and well-contained inflation in its latest assessment. The Washington-based agency said India\u2019s performance has been underpinned by prudent macroeconomic management and a decade of structural reforms that continue to pay dividends.In a report, the IMF noted that \u201creal GDP growth has remained robust following a strong post-pandemic recovery,\u201d adding that reforms such as the goods and services tax (GST), inflation targeting and the expansion of digital public infrastructure \u201chave laid a strong foundation for sustained growth.\u201d It highlighted that these gains have contributed to rising living standards and a sharp drop in extreme poverty, now at 5.3 percent.<\/p>\n

Piyush Goyal Says India Aims to Remain the Fastest-Growing Large Economy for the Next 20 Years<\/p>\n

The IMF said India\u2019s economy has demonstrated resilience despite higher US tariffs, with the overall macroeconomic impact expected to be manageable. Another excerpt underscored that India\u2019s export exposure is limited relative to peers: \u201cIndia is less exposed to global trade than many other Asian Emerging Markets, and its large and growing domestic market holds potential for economic resilience against external shocks.\u201dGrowth remained strong in FY2024-25, with real GDP expanding 6.5 percent, supported by buoyant private consumption and public investment. In the second quarter of FY2025-26, real GDP grew 7.8 percent, helped by firm rural demand and stable inflation dynamics. Headline inflation declined to 1.5 percent in September 2025, driven by lower food prices, while core inflation rose to 4.6 percent.Labour-market data showed steady improvement, with formal employment and real wages rising in both rural and urban areas. Unemployment remained low at 5.2 percent.The IMF said fiscal policy remained broadly balanced, with the Centre continuing consolidation and states increasing social spending. The recent GST reform\u2014featuring simplified slabs and lower compliance burdens\u2014was described as a \u201cwelcome reform\u201d expected to support consumption and broaden the tax net.Financial conditions have also improved, aided by Reserve Bank of India<\/a> actions. The Fund noted that equity markets have recovered, bond yields have eased and credit conditions have stabilised, even as bank credit growth moderated.India\u2019s external indicators remain stable. The current account deficit stood at 0.6 percent of GDP in FY2024-25, supported by strong services exports. Foreign exchange reserves rose to $695 billion in October.Looking ahead, the IMF projects real GDP growth of 6.6 percent in FY2025-26 and 6.2 percent in FY2026-27. A excerpt from the outlook stated: \u201cDespite external headwinds, growth is expected to remain robust, supported by favourable domestic conditions.\u201dThe agency laid out a detailed set of policy priorities to maintain momentum. It said that \u201cmaintaining prudent macroeconomic policies is critical to create enabling conditions for sustained growth,\u201d and called for nimble responses to external uncertainty, particularly around tariffs. Fiscal support to cushion tariff-related disruptions should be \u201ctargeted, transparent and time-bound\u201d, while the pace of consolidation should be calibrated to the impact on the output gap.It added that medium-term fiscal consolidation is needed to rebuild buffers, supported by stronger domestic revenue mobilisation. It said monetary policy should remain data-driven, with \u201croom for further easing\u201d if tariffs remain in place for an extended period. The exchange rate, it noted, should be allowed to act as a shock absorber. Financial policy should continue safeguarding stability by addressing sector-specific vulnerabilities.<\/p>\n","protected":false},"excerpt":{"rendered":"India\u2019s economic outlook remains firmly positive, with the International Monetary Fund (IMF) pointing to strong policy foundations, resilient…\n","protected":false},"author":2,"featured_media":285740,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[84,1294,63170,19871,116304,9120,1431,22214,69396,56,54,55],"class_list":["post-285739","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-business","tag-economy","tag-gst-reform","tag-imf","tag-india-economic-outlook","tag-indian-economy","tag-inflation","tag-reserve-bank-of-india","tag-structural-reforms","tag-uk","tag-united-kingdom","tag-unitedkingdom"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/285739","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/comments?post=285739"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/285739\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media\/285740"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media?parent=285739"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/categories?post=285739"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/tags?post=285739"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}