Summary:

Dr. Gita Gopinath, IMF Deputy Managing Director, is hopeful that India will become the world's third-largest economy by 2027. She noted that India's economy outperformed estimates in the previous fiscal year, improving forecasts. She highlighted a rebound in private consumption, which is likely to exceed 4% growth, driven by improved rural consumption, increasing two-wheeler sales, and gains in FMCG.

Better monsoons and larger harvests are expected to boost agricultural earnings and rural spending, contributing to the positive outlook. The IMF's revised growth forecast for India in FY25 is 7%, higher than the Union government's 6.5% estimate. The IMF report indicates an upward adjustment in growth for developing markets, notably in Asia. According to IMF Executive Director Krishnamurthy V. Subramanian, India’s economy could rise to $55 trillion by 2047, with an 8% GDP growth rate.

Source: IBEF

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