India's Economic Growth: Stability and Reform Drive
The IMF projects India to grow at 6.4% in 2025 and 2026, driven by reform momentum, robust consumption, and public investment. A stable external environment and the need for infrastructure and labor market reforms are key focus areas for sustaining growth.
India is projected to experience stable economic growth, with the International Monetary Fund (IMF) forecasting a rise of 6.4% for both 2025 and 2026. This prediction reflects revisions slightly upwards from earlier expectations due to a favorable external environment.
According to the IMF's latest World Economic Outlook Update, India's growth is fueled by a momentum of reforms supporting robust consumer spending and increased public investment. During a press briefing, Deniz Igan, IMF Research Department Division Chief, emphasized the country's need to maintain this growth momentum by focusing on infrastructure investments and labor market flexibility.
Apart from boosting infrastructure, India is encouraged to invest in education, proceed with land reforms, and expand its social safety net to enhance economic performance further. Such measures are viewed as crucial to sustain the relatively stable growth India has demonstrated in recent years.
(With inputs from agencies.)
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