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On basis of calendar years, India’s growth rate, projected by the IMF, is 7.3% for 2024 and 6.5% for 2025 (pic for representation)
The International Monetary Fund, or IMF, has updated its projected growth rate of India’s Gross Domestic Product (GDP) by 20 basis points to 7 per cent for the fiscal year 2024-’25 (FY25), from its earlier prediction of 6.8 per cent.
“The forecast for growth in India has… been revised upward… with the change reflecting carryover from upward revisions to growth in 2023,” the IMF World Economic Outlook (WEO) stated, accounting the nation’s bolstered consumption, especially in rural India, as the primary reason.
This is the second time that the IMF has revised its projection of India’s GDP growth rate in FY25. In April 2024, the global monetary body had raised its forecast from 6.5 per cent to 6.8 per cent.
The IMF’s latest update of the country’s economy growth rate is close to what the Reserve Bank of India (RBI) recently predicted. According to the RBI projection, India’s GDP will grow at 7.2 per cent in FY25.
On the basis of calendar years, India’s growth rate, as projected by the IMF, is 7.3 per cent for 2024 and 6.5 per cent for 2025.
While the current fiscal sees an upward revision, the IMF, however, has also predicted that India’s economy will see a slight slump in growth rate during the fiscal year 2025-’26, or FY26. The GDP growth rate in the next fiscal, the global monetary body projects, is likely to be around 6.5 per cent.
The growth rate of India’s GDP in the fiscal year 2023-’24, or FY24, which ended on March 31, 2024, was 8.2 per cent. The National Statistical Office, in its provisional estimate, attributed the impressive growth rate to a 7.8-per cent hike in the final quarter of the last fiscal. The rate for the fiscal year 2022-’23, or FY23, was 7 per cent.
On global economy, the IMF predicts it to grow at a slow pace of 3.2 per cent this year. The international organisation, however, improved its forecasted growth rate for China in 2024 by 40 basis points to 5 per cent, primarily owing to robust exports and private consumption in the first three months of FY25.