Regarding the Indian economy, the International Monetary Fund (IMF) says it will maintain its position as the fastest growing major economy by registering a 6.5 percent GDP (GDP) growth in FY 2025-26. India’s economy will continue to grow on the basis of strong private investment and comprehensive economic stability. The IMF stated that India’s strong economic performance provides an opportunity to carry forward structural reforms that are important to achieve the country’s goal of becoming a developed economy by 2047.
Real GDP estimates
After consultation with India, the IMF stated that the actual GDP is expected to grow at a rate of 6.5 percent in FY 2024-25 and 2025-26, which will support strong growth in private consumption based on continuous comprehensive economic and financial stability. According to the second advance estimate released by the Government of India, the country’s economy is expected to grow at a rate of 6.5 percent during 2024-25.
The IMF said that food inflation is expected to decrease and the core inflation will get closer to the target. The IMF statement also emphasized the need for intensive implementation of structural reforms to promote private investment and employment and promote development.
Comprehensive structural reform important
The IMF stated that comprehensive structural reforms are important for creating high quality jobs, promoting investment and promoting high possible growth. Efforts should be focused on implementing labor market reforms, strengthening human capital and supporting more participation of women in labor force. The IMF statement stated that it is important to promote private investment and FDI and it would require a stable policy structure, more ease of trade, governance reforms and increase in trade integration.
