WASHINGTON DC. The International Monetary Fund (IMF) has raised India’s growth estimate for 2025 to 7.3 per cent. IMF released its latest World Economic Outlook update today. This new figure is an upgrade from the previous forecast of 7.0 per cent. Strong domestic demand and rising public investment drove the change. India remains the fastest-growing major economy in the world.
Several key drivers support this positive outlook. High-frequency indicators show robust activity in the services sector. Manufacturing output also remains strong. IMF raises India’s growth estimate because of resilient private consumption. Furthermore, the government’s focus on infrastructure spending has yielded results. These factors create a stable environment for sustained expansion.
The report also noted improvements in the banking sector. Non-performing assets have reached a multi-year low. This allows banks to support credit growth for businesses. Additionally, the inflation rate is moving towards the target range. This stability boosts consumer confidence across the country. The IMF expects this momentum to continue throughout the year.
Global Context of IMF Raising India’s Growth Estimate
India’s growth stands out in a slowing global economy. Most advanced economies are facing stagnant growth rates. IMF raises India’s growth estimate while keeping global forecasts modest. The report suggests that India will contribute significantly to global growth. Structural reforms have made the Indian market more attractive to foreign investors.
Challenges still remain on the horizon. Geopolitical tensions could impact global energy prices. However, India’s diverse trade basket provides a safety net. The IMF advises continued focus on labour market reforms. Education and skill development are also crucial for long-term gains.
IMF raises India’s growth estimate as a sign of economic strength. The nation is well on its way to becoming a 5 trillion-dollar economy. This upgrade reinforces global trust in India’s financial policies. The world is now looking at India as a primary engine of global prosperity.
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