Davos, Jan 21 (NationPress) India remains the fastest-growing major economy globally; however, to achieve the ambitious target of becoming a $10 trillion developed economy by 2047, significant structural reforms are essential, as stated by Gita Gopinath, the IMF Deputy Managing Director.

The recent slowdown in India's growth rate can be attributed to reduced public investments during the election period, she noted.

"We anticipate a recovery in public investments and an upturn in rural consumption. Nonetheless, for India to experience sustainable growth, it must prioritize investments in public infrastructure, adhere to project timelines, enhance the ease of doing business, and integrate more robustly into global supply chains by reducing certain taxes," Gopinath explained in an interview with NDTV.

"India's vision of becoming a $10 trillion economy by 2047 is a long-term goal, and achieving it necessitates substantial structural reforms beyond what has been witnessed in the past decade," the deputy chief of the IMF indicated.

Gopinath also highlighted that the global economy is expanding at a steady rate of 3.3 percent, although disparities exist among leading economies.

While the US economy shows strength, Europe is navigating challenges, and China is dealing with its own issues, particularly in its property sector and the need to stimulate domestic demand, she observed.

She attributed the sustained growth in the US to increased public spending and productivity gains.

The US economy has demonstrated resilience over the past few years. While new policies under the Donald Trump administration require evaluation, there is significant positive sentiment reflected in stock market trends and capital inflows, she noted.

Gopinath emphasized that rising geopolitical tensions and international trade policies are crucial issues that governments must tackle to ensure balanced growth.

According to the government's first advance estimates, the Indian economy is projected to grow at 6.4 percent, marking the slowest growth rate in four years. The GDP expanded by 5.4 percent in the second quarter of the current fiscal year, the slowest in seven quarters, primarily due to a decline in the industrial sector.

Despite the slowdown to 5.4 percent in the second quarter, India's economic growth is expected to recover as domestic demand strengthens, reflecting resilience in consumption supported by promising agricultural prospects, according to RBI economists.

Global trade is anticipated to improve, with volume growth expected to exceed last year's figures in 2025. However, ongoing geopolitical risks and the potential for a more protectionist global environment cast uncertainty over these optimistic projections, as per the assessment.