Growth outlook: Reforms needed to sustain economic growth
The Tribune Editorial: Inflation control, agricultural productivity and employment generation must also stay at the centre of the policy agenda.
THE International Monetary Fund’s latest update raising India’s growth forecast to 6.6% for 2025-26 reinforces the country’s position as one of the world’s fastest-growing major economies. The revision reflects resilient domestic consumption, strong services exports and steady public investment. But beneath this optimism lies the reality of an uncertain global landscape — one marked by trade disruptions, US tariff escalations and tightening financial conditions that could test India’s economic momentum. The IMF’s confidence in India stems largely from its robust domestic market and reform measures aimed at improving fiscal discipline and industrial competitiveness. Infrastructure spending, digital transformation and improved tax collections have strengthened macroeconomic fundamentals. However, exports, particularly in manufacturing, remain vulnerable to protectionist policies and weakening global demand. With China’s slowdown and western economies recalibrating supply chains, India has both a challenge and an opportunity: to build self-reliance while staying integrated in global trade.
