The International Monetary Fund (IMF) has said that India continues to be a major driver of global economic growth despite the economic impact of the Iran conflict and higher energy prices. Addressing a regular IMF press briefing, Director of the IMF’s Communications Department, Julie Kozack, said India’s economy has remained resilient despite external headwinds, supported by robust domestic demand.

 

The IMF has retained its growth projection for India at 6.5 per cent for the financial year 2026-27, maintaining the upward revision made in April. Ms Kozack said the forecast reflects strong momentum carried over from last year and the reduction in US tariff rates, which helped cushion the impact of the global energy shock.

 

She said India’s economy continued to outperform expectations during the first quarter of the calendar year. Ms Kozack also said the IMF views the recent ceasefire in the Middle East and progress towards reopening the Strait of Hormuz as positive developments for the global economy. She noted that oil prices have retreated from their peak but remain around 10 per cent above pre-conflict levels, while some other commodity prices have also begun to ease.

 

The IMF is expected to release its updated global economic projections on July 8.