Imf's Krishna Srinivasan: India Must Boost Private Investment To Meet Its Viksit Bharat 2047 Goal

India continues to outpace peers successful nan Asia-Pacific region pinch a projected maturation complaint of 6.2% successful 2025 and 6.3% successful 2026, according to Krishna Srinivasan, Director of nan Asia & Pacific Department astatine nan International Monetary Fund (IMF). However, he warns that if India is to meet its Viksit Bharat extremity by 2047, it must importantly ramp up backstage investment.

"India has shown resilience," Srinivasan said, noting that its maturation revisions were smaller compared to different nations owed to lesser vulnerability to world waste and acquisition shocks. Yet, backstage assemblage finance remains a concern. “If India has to scope its Viksit Bharat 2047 target, backstage finance really needs to prime up,” he emphasized.

As per IMF's location economical outlook for Asia-Pacific, nan broader region of Asia Pacific is facing headwinds pinch maturation expected to slow to 3.9% successful 2025 and 4% successful 2026. Countries for illustration Cambodia and Vietnam are heavy exposed to nan U.S. market, making them susceptible to rising tariffs and world waste and acquisition tensions, peculiarly betwixt nan U.S. and China.

Despite volatility successful equity markets, enslaved markets person remained comparatively stable. Srinivasan underlined nan request for countries to boost home demand, diversify proviso chains, and summation intra-regional trade—currently only 21% wrong ASEAN.

As per nan report, India’s strengths dishonesty successful its AI take among ample enterprises—leading nan region up of Singapore, China, and LATAM—and its ongoing infrastructure push. Yet, arsenic Thomas Helbling, Deputy Director astatine IMF, pointed out, tariff increases person besides led to downward revisions for India. Helbling  suggests that greater openness to trade, labour marketplace reforms, and a continued attraction connected acquisition and infrastructure will beryllium key.

Published on: Apr 24, 2025 7:38 PM IST