IMF retains India’s growth forecast at 7 per cent for 2024-25
Report
4 min read
The International Monetary Fund has retained its forecast for the Indian economic growth rate of 7 % for 2024-25 and 6.5 % for the 2025-26 financial year. The IMF made the latest projection on the Indian and world economies in its October 2024 edition of the World Economic Outlook report, titled 'Policy Pivot, Rising Threats.’
According to the IMF, the decline in the Indian economy's growth rate is due to the exhaustion of the pent-up demand caused by the COVID-19 pandemic. According to the IMF, the Indian economy is expected to grow according to its potential.
The IMF expects the Indian economy to grow by 6.5% from 2026-27 to 2030-31 fiscal years.
However, a senior IMF official said India is still the world’s largest growing economy.
The IMF releases the World Economic Outlook twice a calendar year at a six-month interval. The report analyses the world economy and its direction in the near and medium term.
The last World Economic Report report was released in April 2024.
World Economy to Grow by 3.2%in 2024 and 2025
According to the IMF, the world economy is expected to grow 3.2 % in 2024 and 2025.
The world's largest economy, the United States, is expected to grow by 2.8 % in 2024 and by 2.2 % in 2025.
The IMF expects the Chinese economy's growth rate to slow from an expected growth of 4.8 % in 2024 to 4.5% in 2025.
Growth Rate Forecast for the Indian Economy
Following are the forecasts of various global and Indian financial agencies regarding the growth of the Indian economy (as of 23 October 2024)
|
Agency / Organisation |
GDP forecast for 2024-25 |
GDP Forecast for 2025-26 |
|
Reserve Bank of India |
7.2% |
- |
|
World Bank |
7 % |
6.7% |
|
International Monetary Fund |
7 % |
6.5% |
|
Asian Development Bank |
7% |
7.2% |
|
Moody's |
7.2 % |
6.6 % |
|
Morgan Stanley |
6.8% |
6.5% |
|
S&P Global |
6.8% |
7% |
|
United Nations |
6.6 % (January to December 2025 ) |
- |
|
OECD |
6.6 % |
6.5% |
|
Fitch Rating |
7.2% |
6.5 % |
|
CRISIL |
6.8% |
- |
|
Citi Bank |
6.8% |
|
|
Standard Chartered Bank |
7.0% |
|
|
India Ratings and Research (Ind-Ra) |
7.5% |
|
|
ICRA |
6.8 % |
|
|
SBI |
7.0 % |
About International Monetary Fund (IMF)
The International Monetary Fund is a global multilateral development bank 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
