IMF Boosts India's GDP Growth Forecast to 6.7% for Current Fiscal Year

In a notable development, the International Monetary Fund (IMF) has revised its GDP growth estimate for India to 6.7% for the current financial year, marking a 40 basis points increase from its earlier forecast of 6.3%. This optimistic adjustment is attributed to robust public investment and favorable labor market outcomes, as highlighted in the latest World Economic Outlook report.

Medium-Term Growth Outlook Raised

IMF also raised India’s upward medium-term GDP growth to 6.5%, representing a 20 basis point upgrade from its October 2023 forecast. This positive adjustment extends to the years 2025 and 2026, indicating sustained economic momentum.

IMF Boosts India's GDP Growth Forecast to 6.7% for Current Fiscal Year — IMF Boosts India’s GDP Growth Forecast to 6.7% for Current Fiscal Year

Current Account Deficit Projection Narrowed

The IMF anticipates India’s current account deficit for FY 24 to decrease from the initial projection of 1.8% of GDP to 1.6%. This reflects a healthier economic balance and improved fiscal dynamics.

India Remains the Fastest-Growing Major Economy

Despite global economic challenges, India continues to outpace other major economies, maintaining its position as the fastest-growing among them. In the preceding financial year (FY 23), India’s GDP had expanded impressively by 7.2%, reinforcing its resilience and economic vitality.