IMF welcomes India’s statistical reforms after 7.8% GDP growth beats expectations
The IMF says stronger services and exports helped India’s second-quarter growth beat expectations, while backing efforts to modernise economic data
India’s real GDP grew 7.8 per cent in the second quarter, exceeding expectations and underscoring the resilience of the world’s fastest-growing major economy, according to the International Monetary Fund (IMF).
Julie Kozack, spokesperson for the IMF, said India’s growth was above the expectations of IMF staff and the consensus among other observers.
“India’s real GDP in the second quarter grew by 7.8%. That was above our staff’s expectations and also the consensus among other observers,” Kozack said.
She attributed the upside surprise to stronger-than-expected activity in the services sector and exports.
“This upward surprise was driven by stronger-than-expected activity in the services sector and in exports,” she said. The latest figures point to continued momentum in key areas of the Indian economy, with services remaining a major contributor to overall activity. Stronger exports also supported growth, highlighting the role of external demand alongside domestic economic drivers.
IMF welcomes India’s statistical reforms
The latest GDP release incorporated a new Index of Industrial Production and a new Producer Price Index series, which are expected to improve the measurement of economic activity and strengthen India’s GDP estimates.
The IMF welcomed India’s efforts to modernise its macroeconomic statistics and encouraged the authorities to continue strengthening the country’s statistical framework and data quality.
The reforms come as policymakers and economists assess the strength and sustainability of India’s economic expansion. Improved statistical series are expected to provide a more accurate and timely picture of economic activity.
Resilience despite energy price shock
Kozack said the growth performance demonstrated the resilience of the Indian economy despite the energy price shock.
“The outturn also underscores the resilience of the Indian economy despite the energy price shock,” she said.
India remains exposed to fluctuations in global energy prices because of its dependence on imported crude oil. Higher energy costs can affect inflation, the trade balance and business costs.
Despite these risks, the IMF continues to view India as a major contributor to global economic growth.
“It also means that India does remain a key growth engine for the world,” Kozack said.
(With inputs from agencies.)
Source: www.firstpost.com