International Monetary Fund (Asia and Pacific) Director Krishna Srinivasan said that private investment in India is still a matter of concern. He said that investment in items like products, machine tools which can increase the productivity of the economy remains slow. Srinivasan said, ‘We are concerned about private investment, which still remains sluggish. If India wants to become a developed economy by 2047, there is a need to give further impetus to private investment.
The IMF on Tuesday reduced India’s growth forecast for fiscal year 2026 by 30 basis points to 6.2 percent. The IMF has reduced growth estimates citing increasing trade tensions and global uncertainty. Thomas Helbling, deputy director of IMF (Asia Pacific), said, ‘If India opens up trade, does structural reforms, does labor reforms, then it can benefit from it. In the long term, India needs to focus on education as well as public infrastructure, which can create business opportunities and enable India to gain wider benefits from regional and global integration.
The IMF has said that the main reason for reducing India’s growth forecast is the increase in tariffs, although the possibility of trade shocks on India is less compared to other countries. The IMF also noted that India is one of the economies where the efficiency of public expenditure is improving and tax reforms have been undertaken to generate more revenue. “Growth in India is driven by exports and consumption picking up pace in late 2024,” the IMF said. However, the results were surprisingly disappointing due to the slow start of public investment after the elections and temporary reasons.
First Published – April 24, 2025 | 11:25 PM IST
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