IMF Upgrades India GDP Growth Forecast To 6.7% For FY24

Growth in India is projected to remain strong, according to the International Monetary Fund, which revised its forecast for the economy.

The IMF now projects India's GDP growth at 6.7% for FY24, it said in its World Economic Outlook published on Tuesday. It is an upward revision of 40 basis points from its projection in October 2023.

The IMF also revised its forecast for FY25 and FY26 by 20 basis points. It now projects GDP to grow by 6.5% in both fiscals. Growth in India is projected to remain strong in FY25 and FY26, reflecting resilience in domestic demand, it said.

Global growth is projected at 3.1% in 2024 and 3.2% in 2025, with the 2024 forecast 20 basis points higher than that in the October 2023 outlook, on account of greater than expected resilience in the United States and several large emerging market and developing economies, as well as fiscal support in China, it said.

The forecast for 2024-25 is, however, below the historical (2000–2019) average of 3.8%, with elevated central bank policy rates to fight inflation, a withdrawal of fiscal support amid high debt weighing on economic activity, and low underlying productivity growth.

(100 basis points is 1 percentage point)