The International Monetary Fund (IMF) has revised India’s Gross Domestic Product (GDP) growth forecast for the financial year 2023-24, lowering it by 20 basis points to 5.9 percent. This latest forecast is slightly below the Reserve Bank of India’s projection of 6.4 percent. Despite the downward revision, India is still projected to be the fastest-growing major economy in the world.
IMF’s World Economic Outlook report:
The International Monetary Fund (IMF) has recently released its World Economic Outlook report, in which it has revised its forecast for India’s retail inflation and growth rate for the fiscal year 2024-25. The IMF now expects India’s retail inflation to be at 4.9% for the fiscal year 2023-24 and 4.4% for the fiscal year 2024-25.
The IMF has also revised its growth forecast for India for the fiscal year 2024-25, lowering it to 6.3% from the earlier projection of 6.8% that was made in January this year. The downward revision in the growth forecast is attributed to the recent surge in COVID-19 cases in India, which has led to localized lockdowns and restrictions, affecting economic activity.
India: fastest-growing major economy in the world:
The latest World Economic Outlook figures released by the International Monetary Fund (IMF) reveal that India remains the fastest-growing economy in the world, despite a significant drop in growth rate projections from 6.8% in 2022 to 5.9% in 2023. In contrast, China’s growth rate is projected to be 5.2% in 2023 and 4.5% in 2024, against a growth rate of 3% in 2022.
While India’s growth rate projection for the next fiscal year has been lowered, it is still higher than most other major economies in the world. The COVID-19 pandemic has impacted economic growth across the globe, and the IMF has lowered its growth projections for the global economy as well, predicting a growth rate of 2.8% this year and 3% in 2024, down 10 basis points each from its January forecasts.