India should retain its position as a major economy for the fastest growth in the world, with a planned GDP growth rate of 6.5% in 2025-2026, according to the International Monetary Fund (IMF). Forecasts, drawn by a solid private investment and macroeconomic stability, underlines India’s economic resilience despite global uncertainties.
The IMF assessment follows the second prior estimate of the Indian government, which also struck GDP growth at 6.5% for 2024-25. “Real GDP is expected to grow at 6.5% in 2024-25 and 2025-2026, supported by robust growth in private consumption on the back of a sustained macroeconomic and financial stability,” said the IMF in his declaration.
While the growth dynamics of India remains strong, the IMF has underlined the need for complete structural reforms to support long -term expansion. “Efforts should focus on the implementation of labor market reforms, strengthening human capital and support for greater participation of women in the active population,” said the report.
Private investment and direct foreign investment (IDE) will be essential, noted the IMF, calling for stable political frameworks, improved the ease of doing business and more in -depth commercial integration through tariff and non -tariff discounts.
Despite a certain moderation of growth, the economy of India has remained resilient, with growth in annual sliding GDP of 6% recorded in the first half of 2024-25. Inflation has released in the tolerance band of the reserve bank of India (2-6%), although fluctuations in food prices have caused volatility.
The financial sector, underlined the IMF, remains solid, with non -performing loans in multi -year stockings. Budgetary consolidation efforts continued and the deficit in the current account has remained well contained, helped by exports of robust services.
The latest IMF assessment highlights India’s economic force while urging continuous reforms to ensure long -term prosperity and to achieve its ambition to become an advanced economy by 2047.
The actual growth of India’s GDP accelerated at 6.2% in October-December 2024 (Q3 FY5), against 5.6% during the previous quarter (Q2), driven by the increase in consumption demand, according to the quarterly GDP estimates of the National Statistics Office (NSO) published on February 27. In comparison, GDP increased by 9.5% in Q3 of 2023-24.
For the full financial year 25, the second advance estimates the growth of PEG GDP at 6.5%, slightly greater than 6.4% provided for in the first estimates in the advance of January.
