IMF Raises Growth Forecast For India From 6.5 Per Cent To 6.8 Per Cent For FY24

The IMF said India is set to remain as the fastest-growing economy globally, surpassing China with the second-highest growth rate estimate of 4.6 per cent during the period under review

The International Monetary Fund (IMF) on Tuesday issued a favourable growth projection for India to 6.8 per cent for the 2023-24 fiscal year (FY24). Earlier in January, the global body gave a growth estimate of 6.5 per cent for the economy. The improvement in the estimates was attributed to robust domestic demand conditions and a jump in the working-age population.

The IMF further noted that with the estimates, India is set to remain as the fastest-growing economy globally, surpassing China with the second-highest growth rate estimate of 4.6 per cent during the period under review. The growth rate for India for the 2024-25 fiscal year (FY25) is estimated to touch 6.5 per cent, the latest edition of the World Economic Outlook, released by the IMF revealed. The report was launched ahead of the annual spring meetings of the IMF and the World Bank. 

The lender predicted a fall in growth in the emerging and developing Asia market from 5.6 per cent in 2023 to 5.2 per cent in 2024, and further lower to 4.9 per cent in 2025. Growth rate in China is anticipated to slow down from 5.2 per cent in 2023 to 4.6 per cent in 2024, and 4.1 per cent in 2025. 

The estimates for global growth remained stagnant at 3.2 per cent from 2023-2025. However, the predictions for 2024 saw a slight upward revision by 0.1 percentage points from the IMF’s January update and by 0.3 percentage points from the October 2023 update. 

Pierre-Olivier Gourinchas, Chief Economist, IMF, called on the authorities across countries to focus on enhancing economic resilience with measures such as strengthening government finances and revamping growth potential, reported PTI. However, he noted that the global economy exhibited major resilience with stable growth and easing inflation.