IMF Raises India's Medium-Term Growth Potential To 6.8%, Flags Need For Productivity Reforms

New Delhi, Nov 13 (KNN) India will need to accelerate productivity growth, strengthen private investment and create more high-quality jobs to achieve its medium-term potential growth rate of 6.8 per cent, the International Monetary Fund (IMF) said on Thursday.

IMF Raises India's Medium-Term Growth Potential To 6.8%

The IMF had raised India's medium-term potential growth estimate to 6.8 per cent from 6.5 per cent in its October World Economic Outlook.

IMF Communications Director Julie Kozack attributed the upward revision to favourable demographics, a large and expanding domestic market and continued progress in structural reforms.

Productivity And Private Investment Key To Sustaining Growth

She said further reforms, particularly those aimed at improving productivity, would be important for sustaining India's growth momentum, reported PTI.

Kozack added that higher productivity, stronger private investment and faster creation of quality employment would be necessary to realise the country's medium-term growth potential.

These issues are also expected to feature in the IMF's upcoming Article IV consultations with India.

IMF Upgrades India's FY27 And FY28 Growth Forecasts

Last month, the IMF raised its growth projections for India to 7 per cent for both FY2026-27 and FY2027-28, compared with its earlier estimates of 6.4 per cent and 6.7 per cent, respectively.

Describing India as a key growth engine for the global economy, Kozack said the country had strong economic fundamentals and had demonstrated considerable resilience.

(KNN Bureau)