IMF's Gita Gopinath: India's economy is expected to grow to become the 3rd largest by 2027

She stated that several reasons have contributed to India's economic growth being better than anticipated in an exclusive interview with India Today.



India's growth has exceeded expectations, according to Dr. Gita Gopinath, First Deputy Managing Director of the International Monetary Fund (IMF), and the organization anticipates that India's GDP will rank third by 2027.

The director of news at India Today, Rahul Kanwal, gave an exclusive interview in which she stated that several reasons have contributed to India's better-than-expected economic growth.

India's growth in the previous fiscal year exceeded our projections, and those carryover gains are affecting this year's forecast. Gopinath continued, "Another driver is the recovery in private consumption that we are seeing."

A favorable monsoon and fresh statistics on FMCG and two-wheeler sales have led the IMF to raise India's GDP estimate for the fiscal year 2024–25 to 7%.

Compared to the 6.5% estimate provided by the Union government in the economic survey, this is more optimistic. By 2027, India's economy is expected to rank third in the world by the IMF.

"If you looked at the growth in private consumption last year, it was about 4%. We anticipate that to rise, propelled by the revival of rural consumption. We may already observe that if we look at the sales of two-wheelers and other so-called fast moving consumer goods. You're witnessing that resurfacing. We anticipate that the improved monsoons will result in increased yields. And as a result, we should witness a rebound in rural consumption as agricultural incomes rise. Thus, those are the two reasons for our upgrade," Gopinath stated, outlining the rationale behind the IMF's raising of India's growth estimate to 7% for the fiscal year 2024–2025.