The International Monetary Fund (IMF) has praised India’s revised GDP data methodology, highlighting the country’s strong economic fundamentals and resilience amid global energy market pressures. The assessment comes as India maintains its position among the world’s fastest-growing major economies.

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Krishna Srinivasan, Director of the IMF’s Asia and Pacific Department, said India entered the global energy shock with strong economic fundamentals and fiscal discipline. He also clarified that pressure on the Indian rupee should not automatically be interpreted as a sign of economic weakness, as exchange rates are influenced by global interest rates, investor sentiment and oil prices.

India’s growth outlook remains encouraging. Following stronger-than-expected economic performance in the April-June quarter, when real GDP expanded by 7.8%, the IMF projected growth of 7% for the current and following year, according to the figures cited in its latest outlook.

The IMF also endorsed India’s updated GDP methodology, which uses 2022-23 as the base year. Srinivasan said the methodological changes were consistent with IMF advice and statistical guidelines, including the 2017 Quarterly National Accounts Manual.

The revised series is intended to strengthen the measurement of economic activity and improve the quality of national accounts. The IMF acknowledged the progress made by India’s Ministry of Statistics and Programme Implementation while noting that statistical systems can continue to improve.

The IMF’s assessment also highlighted India’s resilient domestic demand, strong services sector, favourable demographics and ongoing structural reforms. These factors continue to support the country’s medium-term economic outlook, even as higher oil prices and global financial conditions create external challenges.