IMF's Krishna Srinivasan: India must boost private investment to meet its Viksit Bharat 2047 goal

India continues to outpace peers in the Asia-Pacific region with a projected growth rate of 6.2% in 2025 and 6.3% in 2026, according to Krishna Srinivasan, Director of the Asia & Pacific Department at the International Monetary Fund (IMF). However, he warns that if India is to meet its Viksit Bharat goal by 2047, it must significantly ramp up private investment.

"India has shown resilience," Srinivasan said, noting that its growth revisions were smaller compared to other nations due to lesser exposure to global trade shocks. Yet, private sector investment remains a concern. “If India has to reach its Viksit Bharat 2047 target, private investment really needs to pick up,” he emphasized.

As per IMF's regional economic outlook for Asia-Pacific, the broader region of Asia Pacific is facing headwinds with growth expected to slow to 3.9% in 2025 and 4% in 2026. Countries like Cambodia and Vietnam are heavily exposed to the U.S. market, making them vulnerable to rising tariffs and global trade tensions, particularly between the U.S. and China.

Despite volatility in equity markets, bond markets have remained relatively stable. Srinivasan underlined the need for countries to boost domestic demand, diversify supply chains, and increase intra-regional trade—currently only 21% within ASEAN.

As per the report, India’s strengths lie in its AI adoption among large enterprises—leading the region ahead of Singapore, China, and LATAM—and its ongoing infrastructure push. Yet, as Thomas Helbling, Deputy Director at IMF, pointed out, tariff increases have also led to downward revisions for India. Helbling  suggests that greater openness to trade, labour market reforms, and a continued focus on education and infrastructure will be key.