New Delhi: India’s landmark 7.8 per cent real GDP growth in the first quarter of FY2026-27 has won praise from the International Monetary Fund (IMF). The global financial institution hailed that the performance of India has exceeded its own expectations and the broader forecast, which is driven by the strong service sector growth and benchmark exports.
IMF Communications Department Director Julie Kozack attributed the upside surprise to stronger-than-expected activity in the services sector and exports, while describing the Indian economy as resilient despite the global energy price shock. The IMF also welcomed India’s efforts to modernise its statistical framework, saying new Index of Industrial Production (IIP) and Producer Price Index (PPI) series should help improve GDP estimates.
#WATCH | Julie Kozack, Spokesperson, the International Monetary Fund (IMF), says, "… 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. This upward surprise was driven by… pic.twitter.com/kdutAwaxCz
— ANI (@ANI) September 11, 2026
IMF hails the growth that breached expectations
Kozack said India’s latest economic performance had come in above expectations. “India’s real GDP in the second quarter grew by 7.8 per cent. That was above our staff’s expectations and also the consensus among other observers”, she said at the IMF’s monthly briefing in Washington DC. She said that the positive surprise was driven mainly by stronger-than-anticipated activity in services and exports.
According to the Ministry of Statistics and Programme Implementation (MoSPI), real GDP was estimated at Rs 81.36 lakh crore in Q1 FY27, compared with Rs 75.46 lakh crore in the corresponding quarter of FY26. The 7.8 per cent expansion was also above the Reserve Bank of India’s earlier estimate of 7 per cent.
Services, exports drive growth, despite global headwinds
The services sector and exports were the main contributors to the stronger-than-expected performance, according to the IMF. Services remain a major pillar of India’s economy, spanning information technology, business services, finance and other professional activities. Stronger exports also point to continued external demand despite a difficult global environment.
The performance comes as global trade faces continuing uncertainty from geopolitical tensions, supply-chain disruptions and elevated energy costs. Kozack said the latest figures demonstrated the resilience of the Indian economy, particularly given the external pressures it is facing. “So far, India has shown quite a lot of resilience to the energy price shock,” Kozack added.
IMF welcomes new GDP data framework
The IMF also backed India’s efforts to strengthen the statistical foundations underlying its economic data. Kozack said the latest GDP release incorporated a new Index of Industrial Production and a new Producer Price Index series, which should improve the quality of GDP estimates.
“The latest GDP release that we just talked about incorporated both a new index of industrial production, and a new producer price index series and those two new series should help improve India’s GDP estimates”, she said.
“We welcome these important steps that India is taking to modernise its macroeconomic statistics”, Kozack added, while urging the authorities to continue strengthening the statistical framework and data quality.
The changes are important because GDP calculations draw on a wide range of indicators covering industrial output, prices and activity across different sectors. Better underlying data can therefore improve the measurement of economic activity and the reliability, accuracy of the future estimates.
IMF validation for India’s growth & statistical foundation slams baseless critics
The IMF’s positive assessment comes amid baseless criticism against the credibility and methodology of India’s latest GDP estimates. Former Finance Secretary Subhash Chandra Garg questioned the 7.8 per cent growth figure, particularly the revisions to previous GDP estimates.
Garg had criticised that changes to the previous year’s current-price GDP figures had affected the comparison used to calculate growth. He claimed that GDP at current prices had been revised from around Rs 86 lakh crore to approximately Rs 80 lakh crore and argued that, without the revision, growth would have been much lower.
His claims were subsequently cited by opposition parties questioning the government’s handling of the GDP data. However, the latest validation and appraisal to India’s growth by the IMF is a serious jibe for the opposition and the IMF statement has outrightly rejected the fale claims, baseless allegations of the opposition parties and other critics.
Meanwhile, Chief Economic Adviser V Anantha Nageswaran described Garg’s approach as “cherry-picking” and said the latest estimates had been prepared under a revised methodology, with the financial year ending March 2023 used as the new base. The government also reiterated that the revisions to historical data are a normal consequence of methodological changes and do not indicate manipulation of the figures.
Rahul Gandhi’s “dead economy” comment crumbles amid IMF applause to India’s growth
Congress leader Rahul Gandhi has repeatedly criticised the government’s economic policies and had described the Indian economy as a “dead economy”, while warning of a “big economic tsunami”. However, the IMF data, applause and acknowledgment to India’s strong GDP growth and most importantly Global financial bullwark’s approval to the statistical methodologies adopted in India, unequivocally dismantled the false allegations and propoganda of the Congress party and Rahul Gandhi.
PM Modi calls growth a “Herculean Feat”
Prime Minister Narendra Modi presented the growth figures as evidence of India’s economic strength in a turbulent global environment. In a video message, PM Modi had called the 7.8 per cent growth rate a “herculean feat”, pointing to wars, geopolitical tensions, disrupted supply chains and continuing global uncertainty.
He also criticised the false claims by opposition as an atmosphere of pessimism surrounding the economy. He said “jhooth ki goonj” — an “echo of lies” — and took a sharp swipe at the opposition parties for spreading misinformation.
PM Modi said that India must sustain its growth momentum and continue working towards greater self-reliance. He also renewed his Swadeshi pitch, urging Indians to reduce unnecessary overseas spending and strengthen domestic economic activity.
