Sustained high growth and continuity in reforms will put India on the path to emerge as a developed economy by 2047, the International Monetary Fund said here on Thursday.
The remarks came a day after the IMF’s update to the World Economic Outlook (WEO) said India was one of the fastest-growing economies in the world and a key engine of growth.
"Our WEO update that we published yesterday (Wednesday) projects that the economy is going to remain resilient with a more balanced risk outlook than we had in April. Growth for fiscal year 2026-2027 is projected at 6.4%, rising to 6.7%," Julie Kozack, Director of the Communications Department of the IMF, said in a press conference here.
1 June 2026
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She said achieving developed nation status would require India to continue to have sustained high growth levels over a long period of time and under a range of options.
"For example, things like population growth, currency movements, etc. But importantly, as you note, India would need to continue on the path of reform," Kozack said in response to a question from PTI.
She said India has made significant progress in structural reforms, such as implementing a new labour code, concluding new trade agreements and advancing deregulation at the state level.
"I think for India to achieve this objective, we encourage India to build on this progress, further active efforts to strengthen skills in the economy, increase flexibility in the labour market, to reduce costs for businesses, costs associated with clients and regulation, and to deepen trade integration. Those are some of the reforms for India going forward," Kozack said.
On the question of manufacturing, she said there was evidence of supply chain diversification benefiting India.
"The gains so far have been concentrated in some areas, most visibly in electronics. So, for example, India's electronics exports rose by 24% in fiscal year 2026. Smartphones have become one of the country's largest export products," Kozack said.
The IMF official said much of this increase in production for exports seems to be happening through domestic contract manufacturers rather than foreign-directed ones.
The IMF, in its WEO update, projected India to grow at 6.7% in fiscal year 2028, up 20 basis points from the 6.5% growth projected in April.
India remains among the fastest-growing major economies, with growth projected at 6.4%, supported by strong momentum in private consumption and services activity, the IMF said.
