India leads global growth with robust investment and consumption: IMF

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India continues to lead as the world’s fastest-growing economy, driven by strong investment and private consumption, according to the International Monetary Fund’s (IMF) Asia-Pacific Regional Economic Outlook released on Friday.

In its earlier World Economic Outlook report on October 2, the IMF maintained India’s GDP growth projections at 7% for FY25 and 6.5% for FY26.

Growth in Asia is projected to decelerate in 2024 and 2025, reflecting the diminishing effects of post-pandemic recovery and demographic factors such as aging.

However, short-term prospects remain more optimistic than anticipated in April, the report said.

The Asia-Pacific region is expected to account for around 60% of global growth in 2023, although “the outlook is subject to sizable economic and geopolitical uncertainties,” the IMF cautioned.

Services have already drawn nearly half of the region’s workforce, a substantial increase from 22% in 1990, as millions moved away from agriculture and manufacturing.

During a recent discussion, Finance Minister Nirmala Sitharaman underscored that job creation remains a critical global challenge, urging the World Bank to address this issue amid ongoing economic challenges and the rapid technological shifts transforming the skills needed for young people entering the workforce.