India’s Strong Growth Opens Door for Reforms to Attain Advanced Economy Status by 2047: IMF

The International Monetary Fund (IMF) has appreciated India's "prudent" economic policies, saying that India's robust economic performance offers a chance to make key reforms essential to reach the status of an advanced economy by 2047.

A report issued following the IMF's annual consultations with India applauded the government's macroeconomic policies and reforms, which have helped the nation's resilience and its status as the fastest-growing major economy.

Prime Minister Narendra Modi has fixed 2047—the centenary of Indian independence—as the deadline for making the country a developed economy. The IMF has underscored that India's robust financial system, healthy corporate balance sheets, and progress in digital public infrastructure provide a firm foundation for sustained growth and social development.

At the same time, though, the report also cautioned of future risks, including global economic fragmentation and domestic demand slowdown, highlighting the importance of sustained prudent policies to ensure macroeconomic stability.

The IMF appreciated India's recent reduction in tariffs, which should increase competitiveness and bring the country closer to global value chains. The new Union Budget, read by Finance Minister Nirmala Sitharaman, brought tariff reductions on several imports, such as automobiles and alcohol, with additional cuts likely in the pipeline.

For faster growth, the IMF emphasized the need for wide-ranging structural reforms, such as improvements in labor markets, human capital formation, and more women's participation in the labor force. Besides, to spur private and FDI, India needs to have a stable policy environment, enhance ease of doing business, tighten governance, and expand trade integration.

Through these strategic steps, India is ready to maintain its economic pace and come closer to its ambitious vision of becoming a developed country by 2047.