India remains world growth engine despite Super El Nino risks: IMF

The IMF maintained its optimistic outlook for India's economic performance on Thursday, noting that anticipated disruptions from the Super El Nino weather event have not materialised thus far. India continues to serve as the primary growth engine for the global economy, according to the international lender.

IMF Communications Director Julie Kozack outlined potential risks the nation could face, including lower agricultural yields, rising food price inflation, and corresponding pressure on household purchasing power. However, she emphasised that these threats remain speculative at present. "These are risks that we see India faces, but right now those risks have not materialised," Kozack said at a press conference.

The Fund signalled its intention to reassess India's growth projections in its January World Economic Outlook update once any concrete impacts from the weather event become evident. Earlier this month, the IMF lifted its growth forecasts for India's fiscal years 2027 and 2028 to 7 per cent, compared to earlier projections of 6.4 per cent and 6.7 per cent respectively made in July.

The revised upward trajectory reflects confidence in India's economic momentum, though officials cautioned that future assessments would depend on how weather-related risks unfold across the subcontinent.