India Poised for Economic Surge: Gita Gopinath's Insights

Gita Gopinath, former chief economist at the IMF, predicts India's GDP growth to reach around 7% this fiscal year, exceeding earlier forecasts. She discusses the implications of tariffs and stresses the need for sustained reforms to ensure long-term growth. The improving India-US trade relations are also highlighted.

In a recent address at the India Economic Conclave 2025, Gita Gopinath, former chief economist of the International Monetary Fund, announced that India's economy is set to grow by about 7% this fiscal year, surpassing the IMF's earlier estimate of 6.6%. Gopinath cited the National Statistical Office's release of an 8.2% growth rate for the July-September quarter as evidence of India's economic resilience.

The Reserve Bank of India has revised its GDP growth projection to 7.3%, a leap attributed to robust domestic demand amidst global trade tensions. Gopinath emphasized the necessity of sustained reforms to maintain high growth rates in the future. With global tariffs affecting Indian exports, she noted that improved India-US trade relations remain crucial.

Gopinath also discussed the broader economic implications of tariffs, noting their contribution to inflation and cost-of-living increases in the US. Despite strained India-US relations during the Trump administration due to tariff hikes, she believes collaboration between the two nations is essential. The IMF, meanwhile, continues to navigate its role in supporting nations with economic challenges, like Pakistan, through carefully considered decisions.