The International Monetary Fund (IMF) upped India’s GDP growth forecast for 2024-25 by 30 basis points to 6.8 percent in its World Economic Outlook (WEO) update, citing strong domestic demand. However, the fund’s assessment falls below the government’s 7% growth projection.
India’s growth is expected to remain strong at 6.8 percent in 2024 (FY25) and 6.5 percent in 2025 (FY26), indicating continued strength in domestic demand and an increasing working-age population.
The IMF revised India’s GDP growth prediction for FY24 to 7.8 %, up from 6.7%in its January report. The IMF forecasts the country’s economic growth to decelerate marginally to 6.5% in fiscal year 26.
According to the National Statistical Office’s second advance projections, GDP growth in 2023- 24 is expected to be 7.6%, up from 7% in 2022-23.
The IMF also increased its global growth projection for 2024 by 10 basis points to 3.2%, stating that advanced economies are expected to grow slightly faster, while emerging market and developing economies are expected to grow steadily through 2024 and 2025, with regional differences.