India Needs Quality Jobs And Investment To Realise 6.8% Growth Potential: IMF

India needs to accelerate productivity growth, strengthen private investment and create more high-quality jobs to achieve its medium-term growth potential of 6.8 per cent, the International Monetary Fund (IMF) said on Thursday.

The IMF had upgraded India's medium-term potential growth estimate to 6.8 per cent from 6.5 per cent in its October World Economic Outlook, citing favourable demographics, an expanding domestic market and continued progress in structural reforms. However, sustaining this growth momentum would require further reforms, particularly those aimed at improving productivity, IMF Communications Director Julie Kozack said.

"India would need higher productivity growth, stronger private investment, and faster creation of high-quality jobs," Kozack told reporters in Washington while responding to a question from PTI.

She said the IMF encourages India, like several other countries, to continue implementing reforms with a greater focus on measures that can enhance productivity and strengthen the economy's long-term growth prospects.

Kozack added that these issues would feature in the upcoming Article IV consultations with India, during which the IMF assesses the country's economic policies and overall economic performance.

Last month, the IMF also raised its India growth forecast for fiscal years 2027 and 2028 to 7 per cent, from its earlier projections of 6.4 per cent and 6.7 per cent, respectively, announced in July. Highlighting India's importance to the global economy, Kozack described the country as a key growth engine for the world.

"India does remain a key growth engine for the world. The economy has strong fundamentals and has shown considerable resilience," she said.

The IMF's latest assessment underscores the importance of structural reforms, investment and employment generation in translating India's favourable economic fundamentals into sustained long-term growth.