India remains world's largest growing economy: By IMF Official

IMF official says job creation, removing trade barriers, infrastructure development should be reform priorities for India

IMF noted that the unemployment rate has fallen to 4.9 percent and said participation rates and employment-to-population ratios are on the rise.

NEW DELHI: The International Monetary Fund expects India's GDP to grow modestly from 8.2 per cent in 2023 to 7 per cent in 2024 and 6.5 per cent in 2025. He explained that this is due to the pen-up demand built up during the Covid-19 period being used up as the economy regains its potential.

"In India, GDP growth is moderate from 8.2 % in 2023 to 7 % in 2024 and 6.5 % in 2025." IMF said in the Tuesday World Economic Outlook.

Following the peak of 9.4 % of the previous year in the third quarter of 2022, it is expected that headline inflation will decrease to 3.5 % by the end of 2025.

The annual global economic outlook announced here is predicted that Global remains stable at 3.2 % in both 2024 and 2025, but some of the growth of some low -income countries. There is also a downward correction. Meanwhile, Finance Minister Nirmala Sitharaman expressed optimism about the growth of the Indian economy. 

"India's contribution to global growth is expected to increase by 200 basis points in the next five years," she said, adding that the economy would become the third largest by 2027. 

"The coming decades will be defined by how effectively India manages its demographic dividend, strengthens global partnerships and adapts to the complexities of a rapidly changing world. While the challenges are enormous, India has many opportunities to take the lead not only economically but also in shaping the global debate on technology, sustainable development and inclusive growth," she declared.