India to lose youthfulness, see growth fizzle mere hearsay: KV Subramanian

Multilateral body upbeat: KV Subramanian, Executive Director of the International Monetary Fund (IMF) is optimistic that with its demographic advantage continuing till 2050, India’s FY25 growth is expected to be 7 per cent, even as the country progresses to become a developed economy. 

Speaking exclusively to Republic Business, Subramanian said the youthfulness, which has been a driver in India’s growth, will continue till 2050.  Subramanian’s comments come in the wake of recent concerns that the country may lose out on its ‘demographic dividend’ edge by 2036. 

He said China’s growth has been hit with a dwindling  working population, as reflected in the recent employment data. “ The bleak employment graph has created fiscal roadblocks for China,” he added. “The demographic dividend benefit of India is here to continue. It is just a matter of policies leading to fiscal prudence,” he further said.  

The former Chief Economic Advisor to the Prime Minister said robust growth in India, was subject to the formation of right policies in the next 20 to 25 years.

“By gainfully utilising the predominant youthfulness in the population, India will become a manufacturing hub like China and ramp up the export of products and services globally,” he further commented. Commenting on the International Monetary Fund (IMF) recently revising India’s GDP forecast, Subramanian said the projections of the multilateral body are led by the IMF Director Kristalina Georgieva’s own perspective. 

“The first thing to note is that the IMF Director has recognised that India is the fastest growing economy. The GDP growth of 7.3 and 7.4 is healthy and we must not shy away from being ambitious on growth,” Subramanian added. 

“It is quite often the deliberations at IMF lead to curiosity on what has led to India’s growth. IMF issued a white paper on the global economy and showed India in a positive light,” Subramaniam highlighted.