India’s Growth Rate A Bright Spot Amid US-Iran Tensions, Says IMF Chief

Amid the global oil and gas supply crisis triggered by the US-Iran conflict, IMF Chief Kristalina Georgieva noted that India's growth is more than two times higher than the average global growth.

"Economies that have these strong fundamentals, have the dynamism like India does, they would be performing better. Look at India today. India's growth is more than two times higher than the average global growth," she said.

On the ripple effect felt globally due to the West Asia conflict, the IMF Chief said, “We do not see a scenario under which there would be a dramatic development. Of course, there is one issue that we all need to be very watchful, and it is financial stability. That, for now, seems to be holding relatively well. Let it be that way.”

Recently, the IMF upgraded the South Asian's GDP growth forecast for FY27 to 6.5%, signalling an increase 0.1% from its January numbers. This comes amid mixed global cues linked to US-Iran war.

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The Washington DC headquartered organisation, "For 2026, growth is revised upward moderately by 0.3 percentage point (0.1 percentage point relative to January) to 6.5%, led by positive contributions from the carryover of the strong 2025 outturn and the decline in additional US tariffs on Indian goods from 50 to 10%, which outweigh the adverse impact of the Middle East conflict.

"Growth is projected to stay at 6.5% in 2027.”For India, IMF data and forecasts are presented on a fiscal year basis.“In India, growth for 2025 is revised upward by 1.0 percentage point relative to October, to 7.6%, reflecting the better-than-expected outturn in the second and third quarters of the fiscal year and sustained strong momentum in the fourth quarter,” it said.