India needs to create high-quality jobs, increase productivity growth: IMF
The International Monetary Fund has upgraded India's potential growth to 6.8 percent, citing favorable demographics and a growing economy. Higher productivity growth and stronger private investment are essential to realize this potential. Faster creation of high-quality jobs is also crucial for sustainable economic development. The IMF continues to view India as a key growth engine for the global…
The International Monetary Fund (IMF) has recommended that India foster higher productivity growth, bolster private investment, and accelerate the creation of high-quality jobs to attain its projected medium-term potential growth rate of 6.8 percent. In its October World Economic Outlook, the IMF increased India's medium-term potential growth from 6.5 percent to 6.8 percent.
IMF Communications Director Julie Kozack contributed to the upgrade by considering a few factors, including favorable demographics, a burgeoning domestic economy, and the ongoing momentum of structural reforms. She emphasized India's need to continue these reforms, especially in the realm of productivity growth, when responding to a reporter's question.
Kozack's comments come ahead of the Article 4 consultations with India. In a recent update, the IMF raised India's growth forecast for fiscal years 2027 and 2028 to 7 percent each, up from the previously projected 6.4 percent and 6.7 percent, respectively. Despite the growth forecast increase, India remains a crucial growth engine for the global economy, as highlighted by Kozack.
Written by urgent.news from The Economic Times - Economy's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
