New Delhi: In its latest World Economic Outlook (WEO) Update, the International Monetary Fund (IMF) has projected that India will grow at a steady 6.4% in both FY2025 and FY2026, citing reform momentum and rising public investment as key drivers behind this robust economic performance.
These projections represent a slight upward revision from April’s forecast — by 0.2 percentage points for 2025 and 0.1 percentage point for 2026 — indicating stronger macroeconomic stability and a more favourable global environment.
Reform Momentum and Public Investment Fueling Growth
IMF Research Department’s Division Chief Deniz Igan, during a media briefing, emphasized that India’s stable growth trajectory is supported by:
- Robust consumption
- Government-led infrastructure push
- Continued economic reforms
“The driver of this relatively stable growth for India is the fact that there has been a reform momentum supporting robust consumption growth and a push for public investment,” said Igan.
Policy Focus: Jobs, Reskilling, and Labour Market Reforms
Looking ahead, the IMF highlighted key policy areas for India to sustain long-term growth:
- Job creation and labour reskilling
- Absorbing surplus agricultural labour
- Expanding social safety nets
- Reducing red tape and improving business ease
- Investments in education and land reform
India vs Global and Emerging Market Outlook
In comparison to other economies, India continues to outperform many emerging markets and advanced economies:
- Emerging Markets: 4.1% in 2025, 4.0% in 2026
- China: Revised up to 4.8% (2025) and 4.2% (2026)
- United States: 1.9% (2025) and 2.0% (2026)
- Global Growth: 3.0% in 2025, 3.1% in 2026
The IMF attributed this global uptick to lower-than-expected tariff rates, a weaker US dollar, and fiscal expansion in some advanced nations.
India’s consistent growth at 6.4% over the next two fiscal years reinforces its position as a global economic bright spot. With continued reforms and a sharp policy focus on job creation, the country is set to sustain its development momentum.
Get Latest News Live on MTIMES along with Breaking News and Top Headlines, Political News and around The World.
You May Like
Trending Searches Today |
“India Struck Pakistan Hard and Smart”: Tharoor Praises Operation Sindoor in the US
PM Modi Meets Maldives VP, Speaker to Boost Ties
Asia Cup 2025: India to Clash with Pakistan on September 14 in UAE
AI for India 2.0 Empowers Rural Youth
NEET-PG 2025 to Be Held on August 3: Supreme Court Allows NBE Extension, Denies Further Delay
 Update, the International Monetary Fund (IMF) has projected that India will grow){kind=link}