| Category | Details |
|---|---|
| GDP Growth Projections | IMF projects 6.6% growth for FY 2025-26, following 6.5% in FY 2024-25 and 7.8% in Q1 FY 2025-26. |
| Key Growth Drivers | Domestic demand, public infrastructure investments, digital transformation, GST reforms, and formalization of the economy. |
| GST Impact | Streamlining compliance, broader tax base, and improved Centre-State coordination help mitigate external shocks like US tariff hikes (50%). |
| Global Challenges | Trade slowdowns, geopolitical tensions, and high interest rates in advanced economies pose risks. |
| Structural Reforms Needed | Labour market flexibility, land acquisition reforms, education & health improvements, skilling initiatives, and financial sector deepening for MSMEs. |
| IMF Recommendations | Continued structural reforms essential for transitioning to an advanced economy. |
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