According to the International Monetary Fund (IMF), India’s economy is experiencing strong growth.
Key Projections and Highlights:
- GDP Growth: The IMF projects a real GDP growth rate of 6.5% for India in 2025 .
- Nominal GDP: India’s nominal GDP in 2015 was $2.1 trillion and is projected to reach $4.27 trillion by 2025 . This represents a 100% increase in just ten years .
- Global Ranking: India is expected to surpass Japan as the world’s 4th largest economy in 2026 and become the 3rd largest by 2028 .
- GDP Per Capita: The GDP per capita is estimated at $11,940 in terms of purchasing power parity, indicating improved living standards .
- Government Debt: India’s general government gross debt is 82.6% of GDP .
- Inflation: The IMF expects inflation to remain at 4.1% .
- Factors Driving Growth: Economists attribute India’s GDP growth to government policies and reforms focused on the manufacturing sector, exports, digitalization, GST, and infrastructure . Agriculture, industrial expansion, government policies (like Make in India and PLI), direct benefit transfers, and a strong service sector also contribute .
- Resilience: The IMF has acknowledged the resilience and diversity of India’s financial system, which has navigated pandemic-related challenges effectively .
- Global Comparison: Among the top 10 largest world economies, India has exhibited the highest GDP growth .
