India needs to create high-quality jobs, increase productivity growth: IMF

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IMF Communications Department Director Julie Kozack. | Photo Credit: AFP

India would need higher productivity growth, stronger private investment and faster creation of high-quality jobs to achieve the medium-term potential growth of 6.8%, the International Monetary Fund (IMF) said on Thursday (November 12, 2026).

In its October World Economic Outlook, the IMF had upgraded India’s medium-term potential growth to 6.8% from its earlier estimate of 6.5%.

The upgrade took into account a few factors, including favourable demographics, a large and growing domestic economy or domestic market for goods, and continued momentum on structural reforms, Julie Kozack, Communications Director, IMF, told reporters in Washington.

“But in general, like in many countries, we are encouraging India to take continuing reforms, particularly to focus on how productivity growth can be increased,” she said in response to a question from PTI.

The IMF official said that to further the medium-term potential, India would need higher productivity growth, stronger private investment, and faster creation of high-quality jobs.

Ms. Kozack said these issues will come up during the Article 4 consultations with India.

Last month, the IMF raised India’s growth forecast for fiscal year 2027 and fiscal year 2028 to 7%, from the 6.4% and 6.7% projections respectively made in July.

“India does remain a key growth engine for the world. The economy has strong fundamentals and has shown considerable resilience,” Ms. Kozack said.

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