In a promising development for India’s economic trajectory, Dr. Gita Gopinath, Deputy Managing Director of the International Monetary Fund (IMF), has projected that India will likely secure its position as the third-largest global economy by 2027.
This announcement follows Prime Minister Narendra Modi’s recent Independence Day address, where he highlighted the country’s ongoing reforms and its ambitious economic goals.
India, which has recently ascended to the position of the fifth-largest economy globally, is on track to further strengthen its economic standing.
Gopinath attributed the country’s robust growth in the last fiscal year (FY24) to a strong rebound in private consumption, particularly in the rural sectors.
Significant growth has been observed in various sectors, with two-wheeler sales and fast-moving consumer goods (FMCGs) leading the charge.
The Society of Indian Automobile Manufacturers (SIAM) reported that July saw the production of 2.437 million vehicles, with the two-wheeler segment showing a notable 12.5 percent increase from the previous year.
The FMCG market is also thriving despite challenges. Research by Kantar Worldpanel indicates a projected 6.1 percent growth in the rural FMCG sector for FY 2024-25, up from 4.4 percent the previous year.
The rural market now contributes nearly half of the sector’s volume and value, highlighting its growing significance.
Gopinath emphasized the need for India to generate millions of new jobs over the next 5-6 years to sustain its economic momentum.
The IMF has revised its economic growth forecast for FY25 to 7 percent, up from the 6.8 percent previously anticipated.
Meanwhile, RBI Governor Shaktikanta Das noted that India’s average growth rate over the past three years stands at 8.3 percent, with a current year projection of 7.2 percent.
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