India's Economic Ascent: Fastest-Growing Major Economy Till 2026

The IMF projects India to be the fastest-growing major economy until 2026, with a GDP growth of 6.5%. The country is urged to pursue structural reforms for an advanced economy status by 2047. Private investment, FDI, and policy stability are emphasized to sustain this growth.

According to the International Monetary Fund (IMF), India is set to maintain its status as the fastest-growing major economy with an anticipated GDP growth of 6.5% through 2026. The IMF underscores the importance of robust private investment and macroeconomic stability in driving this projected economic expansion.

The IMF's recent forecasts offer India a conducive environment to execute crucial structural reforms, paving the way for it to become an advanced economy by 2047. Predictions indicate a significant uptick in private consumption, bolstered by sustained macroeconomic and financial stability, with real GDP expected to reach 6.5% growth in the 2024-25 and 2025-26 fiscal years.

Despite a slight moderation, India's economy remains robust, with a 6% year-on-year GDP growth in the first half of 2024-25. The IMF reports better convergence of inflation targets as food price instability recedes, while emphasizing the need for stable policy frameworks and governance reforms to boost private investment and FDI.

(With inputs from agencies.)