India is "effortlessly" the fastest expanding economy, according to an IMF executive director, as GDP growth surpasses projections.

• According to Krishnamurthy Subramanian, executive director at the IMF and former chief economic advisor of India, if you examine the GDP numbers, India is projected to experience approximately 8% growth this year, making it the world's fastest-growing economy.
• According to data released on Thursday, India's economy experienced unexpected growth in the October to December quarter.

According to Krishnamurthy Subramanian, India is the fastest growing economy in the world, with its third-quarter GDP growth surpassing analysts' predictions.

India's economy grew at its fastest pace in six quarters, with private consumption and manufacturing and construction activity driving the growth, according to data released late on Thursday. Reuters had predicted growth of 6.6% for the October to December period.

According to Subramanian, a former chief economic advisor to the Indian government, India is projected to experience approximately 8% growth in GDP this year, as stated on CNBC's "Squawk Box Asia" on Friday.

The Indian government revised its GDP growth forecast for fiscal year 2023-24 from 7.3% to 7.6%.

Over the past few years, the Indian economy has experienced growth due to a change in government focus towards increased capital expenditure, as stated by Subramanian.

The Indian government presented a budget in February, predicting a narrower fiscal deficit of 5.1% for 2025, down from 5.8% in 2024, while highlighting plans to increase spending on infrastructure.

In fiscal year 2025, the interim budget predicts that capital expenditure will increase by 11.1% to 11.11 trillion Indian rupees ($133.9 billion), while tax revenue is expected to rise by 11.4% to 38.31 trillion rupees.

Subramanian stated that he anticipated the same level of fiscal responsibility in the entire union budget, which will be made public following India's general elections.

He stated that he anticipates the emphasis on capital expenditure to persist and the financial calculations appear to be prudent.

The upcoming national election has been positively impacted by the GDP data, enhancing Prime Minister Narendra Modi's economic reputation.

Commerzbank analysts predict that the upcoming elections for PM Modi and BJP, as well as the Reserve Bank of India's strong growth momentum, will reinforce their decision to stay on hold at 6.5% interest rates for the foreseeable future.