IMF report: India’s GDP to grow at 6.5%, needs reforms to boost employment and growth
New Delhi| India’s GDP rate will grow at 6.5 per cent in 2025-26 on the back of strong private investment and macroeconomic stability. On this basis it will retain its position as the fastest growing major economy. India’s strong economic performance provides an opportunity for the country to pursue important and challenging structural reforms to realize its ambition of becoming an advanced economy by 2047, the International Monetary Fund (IMF) reported.
According to the Government of India’s second advance estimate, the country’s economy is expected to grow at a rate of 6.5 per cent during 2024-25. Food price shocks are expected to be in line with the main inflation target as they subside. There is a need for intensive implementation of structural reforms to promote private investment, employment and drive growth, the IMF said. Comprehensive structural reforms are important to create quality jobs, boost investment and achieve high potential growth, the IMF said. Efforts should focus on implementing labor market reforms, strengthening human capital and supporting greater participation of women in the labor force.
According to the report, it is important to promote investment and FDI. This requires stable policy frameworks, greater ease of doing business, governance reforms and increased trade integration. These will include both tariff and non-tariff reduction measures. Despite the recent slowdown, India’s economic growth remains strong.
