India is now the 6th largest economy in the world, according to the International Monetary Fund’s (IMF) World Economic Outlook (WEO) for April 2018.
India is at $2.6 trillion in terms of GDP, displacing France. The five economies ahead are United States, China, Japan, Germany and United Kingdom.
India is believed to grow at 7.4% in 2018 and 7.8% in 2019, making it fastest growing economy in the world.
India has made progress on structural reforms in recent past, including through implementation of Goods and Services Tax (GST), which will help reduce internal barriers to trade, increase efficiency and improve tax compliance.
According to IMF’ WEO, the medium-term growth outlook for India is a strong but important challenge is to increase its inclusiveness.
Apart, India & high public debt and recent failure to achieve budget & deficit target need fiscal consolidation into e medium term to further strengthen fiscal policy credibility. The main priorities for India are upgrading constraints on job creation and ensuring that demographic dividend is not wasted.
For this India needs to ease labor market rigidities, reduce infrastructure bottlenecks, and improve educational outcomes.