IMF's Dr. Gita Gopinath says India could become third largest economy this year

Deputy Managing Director of the International Monetary Fund (IMF), Dr. Gita Gopinath, expressed optimism about India becoming the third-largest economy by 2027. She noted that India's growth exceeded expectations last fiscal year, positively impacting current forecasts. She highlighted the recovery in private consumption, which is expected to rise from 4% growth last year, driven by improvements in rural consumption. This trend is supported by stronger two-wheeler sales and fast-moving consumer goods (FMCG).

She attributed the positive outlook to better monsoons and anticipated improved harvests, which were expected to boost agricultural incomes and rural consumption. The IMF's revised growth projection for India in the FY25 stands at 7%, reflecting this optimistic assessment. Based on new data and favourable monsoon conditions, this revision contrasts with the Union government’s 6.5% projection. The IMF report highlights an upward revision for growth in emerging markets and developing economies, particularly in Asia. Earlier this week, IMF Executive Director Mr. Krishnamurthy V Subramanian suggested that India could become a US$ 55 trillion economy by 2047, provided that growth-oriented policies are diligently implemented to achieve an 8% GDP growth rate.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.