The International Monetary Fund (IMF) says India’s economy continues to grow steadily, but the country may reach the $5 trillion GDP mark a year later than previously expected. The new estimate now points to fiscal year 2028‑29, instead of 2027‑28. The main reasons for the delay are a weaker rupee and slower growth in GDP when measured in dollar terms.
Despite the delay, India remains one of the fastest-growing major economies in the world. Strong domestic demand, robust consumer spending, and healthy growth in services and manufacturing are helping the economy stay on track. Inflation is also under control, which supports stable prices and living costs.
The IMF forecasts that India’s economy will grow by 6.6% in FY2025‑26 and 6.2% in FY2026‑27. Even with the $5 trillion milestone pushed back, the underlying growth story remains strong. Policymakers will need to focus on sustaining domestic growth, managing inflation, and keeping the rupee stable to maintain momentum.
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