IMF Raises India's Growth Forecast to 7 % for 2024-2025

The International Monetary Fund(IMF), in its World Economic Report released on 16 July 2024, has raised its forecast for India’s gross domestic product (GDP) growth rate in 2024-25 by 20 basis points (bps) to 7 per cent. In the earlier April report, it had projected a growth rate of 6.8 per cent for the financial year 2024-25.

The growth forecast for 2025-26 has remained unchanged at 6.5 per cent.

The Indian economy grew by 8.2 per cent in 2023-24, making it the fastest-growing major economy in the world.

The Reserve Bank of India expects the GDP to grow by 7.2 per cent in 2024-25.

India & China are the main engines of global economic growth

According to IMF Chief Economist Pierre-Olivier Gourinchas, India and  China are the main engines of growth in the global economy. The IMF has revised its forecast for the Chinese economy for 2024 to 5 per cent from an earlier projection of 4.6 per cent.

Similarly, India’s growth projection increased to 7 per cent from 6.8 per cent earlier due to strong private consumption, especially in rural areas.

According to Pierre-Olivier Gourinchas, “Growth in India and China accounts for almost half of global growth.”

The IMF expects the Global GDP to grow by 3.2 per cent in 2024 and 3.3 per cent in 2025.

The United States of America’s GDP is expected to grow by 2.6 per cent in 2024 and 1.9 per cent in 2025. 

It expects the global inflation rate to slow to 5.9 per cent in 2024 from 6.7 per cent last year.

Projected India's GDP Growth Rate in 2024-25/2025-26

Following are the forecasts of various global and Indian financial agencies  regarding the growth of the Indian economy (as of 17 July  2024)

About International Monetary Fund (IMF)

The International Monetary Fund is a multilateral institution which was set up in 1944.

The IMF provides loans to the member countries facing economic crisis.

Members ;189 

Headquarters: Washington D.C, USA

Managing Director: Kristalina Georgieva

Reports issued by IMF

• World Economic Outlook 
• Global Financial Stability Report 
• Fiscal Monitor