IMF revises India’s growth projects to 6.8% in 2024

IMF’s India projections: The International Monetary Fund (IMF) has revised India's growth projection upward to 6.8 per cent, a slight increase from its previous forecast of 6.5 per cent in January. The adjustment is attributed to optimistic domestic demand conditions and a growing working-age population. India continues to lead as the fastest-growing economy globally, surpassing China's growth projection of 4.6 per cent for the same period.

According to the latest World Economic Outlook released by the IMF ahead of the annual spring meetings of the IMF and the World Bank, India's growth momentum is expected to remain robust, with projections of 6.8 per cent for 2024 and 6.5 per cent for 2025. This strength is underpinned by sustained domestic demand and demographic factors.

Meanwhile, growth in emerging and developing Asia is anticipated to decline slightly from an estimated 5.6 per cent in 2023 to 5.2 per cent in 2024 and 4.9 per cent in 2025, reflecting a modest upward revision compared to the January 2024 WEO Update.

China's growth is forecasted to decelerate from 5.2 per cent in 2023 to 4.6 per cent in 2024 and 4.1 per cent in 2025, as the effects of temporary factors wane and challenges in the property sector persist.

On a global scale, growth is projected to maintain a steady pace of 3.2 per cent in 2024 and 2025, with a marginal upward revision for 2024 compared to previous forecasts. Policymakers are advised to prioritise initiatives aimed at enhancing economic resilience, including strengthening government finances and revitalising growth prospects.

Pierre-Olivier Gourinchas, Chief Economist of the IMF, highlighted the resilience of the global economy amidst various challenges, including supply chain disruptions, geopolitical tensions, and inflationary pressures. He underlined the importance of measures to mitigate economic scarring, particularly in low-income developing countries still grappling with the aftermath of the pandemic and rising living costs. 

Concerns remain regarding China's property sector downturn and its implications for domestic demand and external trade dynamics.

(With PTI inputs)