India will need faster productivity growth, stronger private investment and quicker creation of high-quality jobs to realise its medium-term potential growth of 6.8 percent, the International Monetary Fund (IMF) said on Thursday.
In its October World Economic Outlook, the IMF raised India's medium-term potential growth estimate to 6.8 percent from its earlier projection of 6.5 percent.
The upward revision factored in favourable demographics, the size and expansion of India's domestic market, and sustained momentum in structural reforms, Julie Kozack, Director of Communications at the IMF, told reporters.
"Like many countries, we are encouraging India to continue with reforms, particularly those aimed at boosting productivity growth," she said
Kozack said that improving productivity, stepping up private investment and accelerating the creation of high-quality jobs would be critical to unlocking India's medium-term growth potential.
She added that these issues would feature in the IMF's upcoming Article IV consultations with India.
Last month, the IMF raised its growth projections for India to 7 per cent for both FY27 and FY28. In July, it had projected growth of 6.4 per cent for FY27 and 6.7 per cent for FY28, respectively.
"India remains a key growth engine for the world. The economy has strong fundamentals and has demonstrated considerable resilience," Kozack said.