Outlook Business Desk
According to the International Monetary Fund's (IMF) latest report, India's gross domestic product (GDP) has registered 103.1% growth over the last decade and is likely to reach $4.27trn by the end of 2025 from $2.1trn in 2015.
India showcased the highest GDP growth in 10 years among the top 10 largest economies in the world. Three of the current top four economies—the USA, China and Germany—registered 65.8%, 75.8% and 43.,7% growth respectively.
The report stated that India will remain the fastest-growing major economy, projected to grow at 6.5% in FY25 and FY26. The country's GDP is estimated to reach $5723.3bn by 2028, making it the third-largest economy in the world in terms of GDP.
IMF also projected that India will surpass Japan in 2026 to become the world's 4th largest economy.
Economists have attributed India's growth to the government policies and reforms with special emphasis on the manufacturing sector, exports, digitalisation, GST and capex push for the infrastructure.
Even as the country's growth prospects seem positive, the Indian economy could still face persistent challenges ahead - inflation and government debt.
IMF noted that inflation is a crucial factor that is influencing economic conditions, news agency ANI reported. The financial agency expected India's to remain at 4.1%.
IMF further noted that the central government debt is 82.6% of current GDP, significantly higher than India's economic output, which could be challenging for fiscal policies