IMF revised India’s growth projection at 6.8% in 2024

IMF growth projection: In the latest economic forecast released by the International Monetary Fund (IMF), India emerges as a standout performer, showcasing a robust growth trajectory. The IMF projects India's economy to expand by 6.5 per cent in 2024, surpassing China's growth projection of 4.6 per cent for the same period.

“Indeed, India is one of the strong performers. We had a fairly sharp revision in the Fiscal Year 2023 to 2024, the one that is ending, and that has just ended. Then we have a 0.3 percentage point upgrade for Fiscal Year 2024 to 2025. So India is doing quite well,” Pierre-Olivier Gourinchas, chief economist of the IMF, told reporters at a news conference here.

Pierre-Olivier Gourinchas, IMF's chief economist, emphasised India's strong performance, citing significant revisions for the fiscal years 2023 to 2024 and a notable upgrade for fiscal years 2024 to 2025.

India's growth story remains compelling, with projections indicating sustained strength in domestic demand and a growing working-age population. Meanwhile, the outlook for emerging and developing Asian economies is slightly decelerated. China's growth is also expected to taper off due to various factors, including post-pandemic consumption effects and ongoing challenges in the property sector.

On the global front, economic growth is expected to maintain a steady pace, with projections revised slightly upwards. However, there are cautionary notes regarding the moderation in growth, attributed in part to tightening monetary and fiscal policies aimed at managing inflation.

Daniel Leigh, Division Chief at the IMF Research Department, highlighted potential upside risks to the forecast, including a potential boost in private demand and the implementation of reforms aimed at stimulating investment and enhancing export competitiveness.

Overall, the IMF paints a balanced risk outlook for the global economy, with India shining brightly among the world's economic performers.