Last Updated on June 26, 2026 12:08 am by BIZNAMA NEWS
AMN
The International Monetary Fund (IMF) has confirmed that India continues to serve as a vital driver of global economic growth, showing remarkable resilience despite the economic fallout from the Iran conflict and elevated energy prices. Speaking at a regular press briefing, Julie Kozack, Director of the IMF’s Communications Department, highlighted that while India has not been completely immune to disruptions in global energy markets, its economy has maintained robust growth supported heavily by strong domestic demand.
The IMF is maintaining its upwardly revised growth projection for India at 6.5 percent for the fiscal year 2026-27. According to Kozack, this strong forecast is propelled by powerful momentum carried over from the previous year alongside a significant reduction in US tariff rates—which dropped from 50 percent to 10 percent—helping to partially offset the harsh impact of global energy shocks. Furthermore, India’s economy outperformed expectations in the first quarter of the calendar year, expanding at 7.8 percent, which was notably higher than the IMF’s initial April projections.
Addressing concerns over whether Middle East tensions and shipping disruptions around the Strait of Hormuz would cripple India’s energy-dependent economy, Kozack acknowledged that India faced clear supply disruptions and felt the sting of higher import prices. However, she noted that the IMF views the recent regional ceasefire and progress toward reopening the Strait of Hormuz as highly positive developments for the global economy. Consequently, oil prices have retreated from their peak, though they remain roughly 10 percent above pre-war levels. Kozack concluded that India decisively remains an economic growth engine despite these external headwinds. The IMF will release its next set of updated global economic projections on July 8.