(MENAFN- KNN India)
New Delhi, Jul 17 (KNN) The International Monetary Fund (IMF) has raised its growth projection for India's gross domestic product (GDP) in the fiscal year 2024-25 by 20 basis points to 7 per cent. This upward revision, announced on Tuesday, is attributed to a boost in private consumption, particularly in rural areas.
According to the IMF's updated World Economic Outlook (WEO), the adjustment reflects carryover effects from upward revisions to growth in 2023. The organisation maintains its previous forecast of 6.5 per cent growth for India in 2025-26.
India's Economy expanded by 8.2 per cent in 2023-24, surpassing the 7 per cent growth recorded in 2022-23. This performance was bolstered by a stronger-than-anticipated fourth-quarter expansion of 7.8 per cent, as per provisional estimates from the National Statistical Office (NSO).
The Reserve Bank of India (RBI) has projected a 7.2 per cent growth rate for the Indian economy in FY25. RBI Governor Shaktikanta Das recently suggested that India is approaching a 'major structural shift' in its growth trajectory, potentially sustaining 8 per cent annual GDP growth over an extended period.
In a broader context, the IMF has also upgraded China's growth forecast for the 2024 calendar year by 40 basis points to 5 per cent, citing a rebound in private consumption and strong exports in the first quarter.
On a calendar-year basis, India's growth projections stand at 7.3 per cent for 2024 and 6.5 percent for 2025.
IMF Chief Economist Pierre-Olivier Gourinchas emphasised that emerging market economies in Asia, particularly India and China, remain the primary drivers of global economic growth.
However, he cautioned that the five-year outlook remains weak, largely due to slowing momentum in emerging Asia.
The IMF's global growth projections remain unchanged at 3.2 per cent for 2024 and slightly higher at 3.3 per cent for 2025.
The organisation predicts a decline in the global inflation rate from 6.7 per cent last year to 5.9 per cent in 2024, indicating progress towards a soft landing for the global economy.
Gourinchas noted that while inflation has decreased without triggering a recession, energy and food price inflation in many countries have nearly returned to pre-pandemic levels, even as overall inflation persists.
(KNN Bureau)
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