With main worldwide companies, together with IMF, persevering with to venture India because the fastest-growing major financial system on this planet, analysts mentioned that US President Donald Trump’s description of India as a “lifeless financial system” is “misplaced”.
India continues to be a hot-bed for international funding with a number of worldwide giants trying on the nation for organising manufacturing base to International Functionality Centres (GCCs).
Additionally, Indian expertise is most wanted notably within the tech sector and has been a major exporter of providers to nations, together with the US.
A day after saying 25 per cent tariffs on India, plus a ‘penalty’ for its commerce with Russia, Trump in a social media submit on Thursday mentioned, “I do not care what India does with Russia. They will take their lifeless economies down collectively, for all I care.”
Consultancy agency EY India described Trump’s feedback in opposition to India as “fairly misplaced” and mentioned, in truth, the centre of gravity of the world financial system is slowly shifting to the International South for which India has positioned itself in a number one function.
“However, the erstwhile developed economies are ageing quick and it’s largely the contribution that Indian diaspora makes in these economies that they proceed to point out some constructive development,” EY India Chief Coverage Advisor DK Srivastava informed PTI.
By the way, the Government Board of the Worldwide Financial Fund (IMF) in its evaluation of the Indian financial system in February 2025 had recommended “the authorities’ prudent macroeconomic insurance policies and reforms, which have contributed to creating India’s financial system resilient and as soon as once more the fastest growing major financial system”.
IMF had additionally mentioned India’s robust financial efficiency gives a chance to advance important and difficult structural reforms to understand its ambition of changing into a sophisticated financial system by 2047.
EY’s Srivastava additional mentioned the Indian financial system is probably the most energetic and dynamic on this planet with its inhabitants among the many youngest.
As per the UN Inhabitants Statistics (2024), the median age of India’s inhabitants is 28.8 years whereas that of the US is 38.5 and that of Europe is 42.8 years.
“It’s these superior economies which have grow to be aged each in phrases of median age and in phrases of development prospects. Moreover, India can also be blessed with ample human assets which are technologically expert and making vital contributions to the futuristic fields of house, AI, and Gen-AI,” Srivastava mentioned.
In keeping with the IMF’s newest World Financial Outlook Replace report, India is poised to develop at 6.4 per cent in 2025 in addition to 2026. That is additionally an upward revision from IMF’s April forecast of 6.2 and 6.3 per cent, respectively.
Comparable projections have been made by different worldwide companies like Washington-headquartered World Financial institution, the Asian Improvement Financial institution (ADB) and Paris-based Organisation for Financial Cooperation and Improvement (OECD).
Whereas the World Financial institution and OECD have projected India’s GDP development at 6.3 per cent for FY26, ADB estimates it at 6.5 per cent.
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