India could become third-largest economy by 2027, says IMF official
According to Gita Gopinath, India's growth was much better than expected in the last fiscal (FY24) as private consumption growth recovered across all sectors
India is likely to become the world’s third-largest economy by 2027, says Gita Gopinath, deputy managing director of the International Monetary Fund (IMF).
India is presently the fifth-largest economy globally.
According to Gopinath, India's growth was much better than expected in the last fiscal (FY24) as private consumption growth recovered across all sectors, especially in the rural economy.
Surging consumption in India
The overall consumption was surging in almost all fields, from two-wheeler sales to fast-moving consumer goods, she said.
"With better monsoons come better harvests and agricultural incomes go up," media reports quoted her as saying.
But she also warned that India needs to create millions of additional jobs in the next five-six years.
IMF ups economic growth
The IMF has raised its economic growth forecast for India for FY25 to 7 per cent from 6.8 per cent projected in April.
According to Reserve Bank of India governor Shaktikanta Das, the average growth rate comes to 8.3 per cent if the average growth over the last three years is seen.
In the current year, the economy is expected to grow by 7.2 per cent-, he said.
