India continues to go beyond peers in the Asia-Pacific region with a planned growth rate of 6.2% in 2025 and 6.3% in 2026, according to Krishna Srinivasan, director of the department of Asia and the Pacific of the International Monetary Fund (IMF). However, he warns that if India wants to achieve its goal of Viksit Bharat by 2047, it must considerably increase private investments.
“India has shown resilience,” said Srinivasan, noting that its growth revisions were smaller compared to other nations due to less exposure to world trade shocks. However, private sector investment remains a concern. “If India has to reach its Viksit Bharat 2047 goal, private investment must really recover,” he said.
In accordance with the IMF regional economic prospects for Asia-Pacific, the wider region of Asia-Pacific is faced with winds-to-growth with growth that should slow down to 3.9% in 2025 and 4% in 2026. Countries like Cambodia and Vietnam are strongly exposed to the American market, which makes them vulnerable to increasing prices and global trade tensions, in particular between the United States and China.
Despite the volatility of the stock market markets, the bond markets remained relatively stable. Srinivasan stressed the need for countries to strengthen domestic demand, diversify supply chains and increase intragional trade – currently at only 21% within the Anase.
According to the report, the forces of India reside in its adoption of AI among large companies – by putting the region before Singapore, China and Latam – and its current infrastructure. However, as Thomas Helling, Deputy Director of the IMF pointed out, the rate increases have also led to downward revisions for India. The test suggests that a greater opening to trade, the labor market reforms and a continuous emphasis on education and infrastructure will be the key.
