New Delhi: The International Monetary Fund (IMF) has increased India’s growth forecast for 2024 to 7%, up from the previous estimate of 6.8%. The IMF had initially predicted a 6.5% growth rate for India in 2024, which was later revised to 6.8%, and now stands at 7%.
The IMF also projected India’s growth rate at 6.5% for 2025. The IMF attributes this robust growth to strong domestic demand and an increasing working-age population, which are seen as key drivers behind India’s economic performance.
The forecast for growth in emerging market and developing economies has been revised upward and the projected increase is powered by stronger activity in Asia, particularly China and India.
For China, the growth forecast has been revised upward to 5 percent in 2024, primarily on account of a rebound in private consumption and strong exports in the first quarter, IMF said.
Gita Gopinath, IMF’s First Deputy Managing Director, stated that India and China will account for nearly half of global growth in 2024.
New WEO update: Growth in India & China will account for almost half of global growth in 2024. Growth in major advanced economies is more aligned: euro area growth picks up as the US shows signs of cooling after a strong year. Read here: https://t.co/LQe1ZD2sOR pic.twitter.com/IyjWgBFv68
— Gita Gopinath (@GitaGopinath) July 16, 2024
The IMF has revised its growth forecast for emerging markets upward, driven by stronger activity in Asia. China’s 2024 growth forecast is now 5%, due to a rebound in private consumption and strong exports. India’s growth forecast has been raised to 7%, reflecting improvements from 2023 and better prospects for private consumption in rural areas.
India’s GDP for the financial year 2023-24 grew impressively at 8.2%, maintaining its position as the fastest-growing major economy. This growth follows rates of 7.2% in 2022-23 and 8.7% in 2021-22, according to official Indian government data.
The Reserve Bank of India has raised its GDP forecast for 2024-25 to 7.2% from the previous 7%, reflecting optimism about economic prospects. Similarly, the World Bank has revised India’s GDP growth forecast for the same period to 6.6% from 6.4%, attributing the upward revision to stronger domestic demand.
