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

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

Reuters
Published : 30 Jan 2024, 06:43 PM
Updated : 30 Jan 2024, 06:43 PM

India's economy is likely to grow at 6.5% in the financial year starting Apr 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.