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IMF raises India’s growth forecast to 6.5% for next financial year

January 30, 2024
in Business
IMF raises India’s growth forecast to 6.5% for next financial year
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IMF raises India's growth forecast to 6.5% for next financial year
© Reuters. FILE PHOTO: A general view of high-rise residential buildings amidst other residential buildings in Mumbai, India, December 1, 2023. REUTERS/Francis Mascarenhas/File Photo

NEW DELHI (Reuters) – India’s economy is likely to grow at 6.5% in the financial year starting April 1, 2024 and at a similar pace the year after, the International Monetary Fund said in its World Economic Outlook released on Tuesday.

The IMF also revised its projections for GDP growth in the world’s fifth largest economy during the current financial year to 6.7% from 6.3% in October.

The strong growth projection for India came even as the report projected that growth in the wider region of “developing Asia” will decline to 5.2% in 2024 and 4.8% in 2025 from an estimated 5.4% in 2023.

“Growth in India is projected to remain strong at 6.5% in both 2024 and 2025, with an upgrade from October of 0.2 percentage point for both years, reflecting resilience in

domestic demand,” the IMF report said.

The IMF’s projection of 6.5% is lower than the Indian federal government’s expectation of 7% growth in the economy in the next fiscal year, as stated in its latest economic review released on Monday.

The growth estimates come days before Prime Minister Narendra Modi’s government presents its last budget prior to parliamentary elections, in which he will seek a third term.

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