IMF Raises India’s GDP Forecast To 6.8% For 2024–25

IMF Raises India’s GDP Forecast To 6.8% For 2024–25

On Tuesday, the International Monetary Fund (IMF) upgraded its forecast for India’s GDP growth in the fiscal year 2024–25 to 6.8%, up from its earlier projection of 6.5%.

This upward revision is attributed to robust domestic demand and a growing working-age population. India’s central bank, the Reserve Bank of India (RBI), is also optimistic, estimating a 7% growth rate for the ongoing financial year, which began on April 1st.

Looking ahead, the IMF anticipates India’s GDP to expand by 6.5% in the subsequent financial year. Additionally, the IMF has revised its growth forecast for India for the fiscal year 2023–24, now projecting a growth rate of 7.8%, up from the previous estimate of 6.7% made in January. These projections outpace India’s official estimates, which had pegged growth at 7.6%.

Despite global economic challenges, the IMF notes that the global economy remains resilient, with steady growth and inflation returning to target levels. The organisation forecasts global real GDP growth at 3.2% for both 2024 and 2025, maintaining the same rate as in 2023.

These projections, which outpace China’s 4.6% growth forecast for the same period, highlight India’s continued position as the world’s fastest-growing economy.