The International Monetary Fund (IMF) has projected that India will account for 18% of global growth by 2028, up from 16% currently. This would make India the second-largest contributor to global growth, after China.
The IMF's projection is based on a number of factors, including India's strong demographic profile, its growing middle class, and its favorable investment climate. The IMF also expects India to benefit from continued economic growth in the rest of Asia, as well as from global trade and investment.
However, the IMF also cautioned that India needs to address some challenges in order to maintain its high growth trajectory. These challenges include:
- Increasing inequality: India's income inequality has been rising in recent years, and this could dampen consumer demand and investment.
- Weak infrastructure: India's infrastructure, particularly its transportation and power networks, needs to be improved in order to support continued economic growth.
- Skills gap: India needs to invest in education and training to ensure that its workforce has the skills needed to compete in the global economy.
Overall, the IMF's projection is a positive sign for India's economy. If India can address its challenges, it is well-positioned to become a major driver of global growth in the coming years.
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