The International Monetary Fund (IMF) on Thursday said the impact of weather events such as the Super El Nino was yet to materialise for India, which remains the engine of growth for the world economy.
The IMF listed lower crop yields, increased food price inflation and its impact on the purchasing power of households in India due to the Super El Nino.
“So these are risks that we see that India faces, but right now those risks have not materialised,” IMF Communications Director Julie Kozack told a press conference here.
She said the IMF will reassess India’s growth projections in the January World Economic Outlook update after the risks posed by the weather event materialise.
Earlier this month, the IMF raised India’s growth forecast for fiscal year 2027 and fiscal year 2028 to 7 per cent, from the 6.4 per cent and 6.7 per cent projections respectively made in July.
“So, we see it really as a risk going forward, and of course depending on whether that risk materialises, we will reassess our growth projections for India the next time in our January WEO update,” Kozack said.
“But for now what we see is quite strong growth momentum in India, and it continues to be an engine of growth,” the IMF official said.
Kozack said the 7 per cent growth projection for FY-27 and FY-28 in the IMF’s World Economic Outlook report released in Bangkok earlier this month was supported by robust domestic demand and strong services activity in India.
