The International Monetary Fund (IMF) reaffirmed confidence in India’s economic resilience, describing the country’s fundamentals as “pretty strong,” with robust growth, moderating inflation, and a well-managed fiscal deficit.

“India continues to be the fastest-growing major economy. We have India going at 6.6% this year. If you look at India’s fundamentals—pretty strong. Growth is good, inflation is coming down, and the fiscal deficit is well-managed. There are many things working in India’s favour,” said Krishna Srinivasan, Director of the IMF’s Asia and Pacific Department.

Srinivasan noted that even with 50% US tariffs, India’s growth momentum remains intact, supported by structural reforms like the Goods and Services Tax (GST), which is expected to boost domestic consumption and demand.

He added that a potential trade deal between India and the US could further accelerate growth. “If India reaches a trade agreement with the US, when tariffs are lower, there’s an upside potential to growth next year,” Srinivasan said.

Commenting on India’s energy diversification, he said, “Diversification of export markets is always good to insulate from external shocks.”

IMF Managing Director Kristalina Georgieva echoed this optimism, praising India’s reform-driven growth model. “India is one of the fastest-growing economies and contributes substantially to global growth. The country’s tax reforms, infrastructure investments, and digital transformation have injected strong growth potential,” she said.

The IMF’s latest World Economic Outlook raised India’s 2025 growth projection to 6.6%, a 0.2% increase from its July estimate, crediting strong first-quarter performance for offsetting the impact of US tariffs on Indian exports.