Sat Mar 01 17:05:47 UTC 2025: ## IMF Predicts India to Remain Fastest-Growing Major Economy Through 2026
**New Delhi, [Date]** – The International Monetary Fund (IMF) has projected India to maintain its position as the world’s fastest-growing major economy, forecasting a GDP growth rate of 6.5 percent for both fiscal years 2024-25 and 2025-26. This positive outlook, following Article IV consultations, is attributed to robust private investment and sustained macroeconomic stability.
The IMF highlighted the strong performance as an opportunity for India to accelerate crucial structural reforms, paving the way for its ambition to become an advanced economy by 2047. The agency emphasized the need for deeper implementation of these reforms to boost private investment, create high-quality jobs, and stimulate higher potential growth.
Specific areas identified for reform include labor market adjustments, human capital development, and increased female labor force participation. Furthermore, the IMF stressed the importance of boosting private investment and foreign direct investment (FDI) through stable policy frameworks, improved ease of doing business, governance reforms, and enhanced trade integration – including tariff and non-tariff reductions.
Despite recent moderation, India’s economic growth remains robust, with a year-on-year GDP growth of 6 percent in the first half of 2024-25. Inflation, while showing a decline within the Reserve Bank of India’s target band (2-6 percent), has experienced some volatility due to food price fluctuations. The financial sector remains resilient, with non-performing loans at multi-year lows, and fiscal consolidation continues alongside a well-contained current account deficit, supported by strong service exports. The IMF’s projections are largely in line with the Indian government’s own second advance estimate of 6.5 percent growth for 2024-25.
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