It seems like Indian stock markets are having the best time of their lives. The Sensex is perched near the 30,000 mark and the results season has just started. Primary markets are also on a spree, with a dozen of IPOs lined up in the upcoming months. The government is also coming up with various measures to scale up the present state of the Indian economy. Seems like optimism is in the air!

If the above optimism wasn’t enough, the IMF’s recent report came out to give a nudge to the ongoing momentum. This came as the International Monetary Fund (IMF) revised upwards India’s growth forecast for FY17 to 6.8%.

The above revision was against the fund’s January estimate of 6.6% and just ahead of China’s 6.7% for 2016.

The revision comes as the IMF sees an acceleration of activity resulting from the implementation of important structural reforms.

If the estimates turn good, India will be allowed to keep the tag of fastest growing economy.

The above estimate augurs well for the Indian economy. However, it also brings some doubts along with it. This we say is because while many reforms have been introduced by the government in the past, only a few have been actually implemented.

Also, if we have to limit our focus to the present state, there are many areas of the economy that are weighing heavy on India’s economic growth.

The list includes India’s big unemployment crisis, the ill state of PSUs, the problem of labour laws, poor corporate earnings, etc.

So while India may very well be the fastest growing economy, there still remain some considerable challenges.

The need of the hour is for the government to embrace reforms and remove all the binding constraints that lie in the implementation process. This would be critical in ensuring a sustained high GDP growth for the country in the long-term.

The recent news may provide some room for the optimism to continue. However, if things keep on going as they are today, India will have lesser credit to be called as the world’s fastest growing economy in the long term.