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flag India's productivity growth is uneven, with services rising due to digital adoption while manufacturing and agriculture lag, prompting IMF recommendations for reforms to boost growth.

flag A January 29, 2026, IMF report finds that India’s productivity growth remains uneven, with services thriving due to digital adoption while manufacturing and agriculture lag. flag Small firms dominate manufacturing, constrained by regulations and low dynamism, and agriculture employs over 40% of workers but produces far less per worker. flag The IMF estimates that reforms to boost innovation and reduce business barriers could increase productivity growth by nearly 40%, equivalent to a 0.6 percentage point rise. flag Key recommendations include easing regulations, improving digital infrastructure, expanding workforce training, and advancing labor and land reforms to support a more dynamic economy.

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