India’s GDP Growth Projection Raises by IMF To 6.8% For FY 2024-25

Utkarsh Classes Last Updated 17-04-2024

India’s GDP Growth Projection Raises by IMF To 6.8% For FY 2024-25

Report 5 min read

The International Monetary Fund (IMF) has revised India's Gross Domestic Product (GDP) growth projection to 6.8 percent for the financial year (FY) 2024-25, which is an increase of 30 basis points from its January forecast of 6.5 percent.

The IMF's update to the World Economic Outlook report stated that India's growth is expected to remain strong in FY 2024-25 at 6.8 percent and in FY 2025-26 at 6.5 percent due to the continuing strength in domestic demand and a rising working-age population.
In addition, the report projected global growth to continue at the same pace of 3.2 percent in FY 2024-25 and FY 2025-26.
This means that India remains the fastest growing economy in the world, with a growth projection of 6.8 percent, which is higher than China's growth projection of 4.6 percent during the same period.

Key points of report

According to the International Monetary Fund (IMF), the global economy is expected to grow by 3.2% this year, which is slightly higher than the 3.1% predicted earlier this year. The IMF predicts that the same growth rate will continue in 2023 and 2025.
The IMF has revised its growth projection for the US economy from the earlier prediction of 2.1% to 2.7% this year. It also expects the US economy to grow at a solid rate of 2.5% in 2023.
On the other hand, the Chinese economy, which was once known for its double-digit annual growth, is expected to slow down from 5.2% in 2023 to 4.6% in 2024 and eventually to 4.1% next year.
Japan's economy, which is currently the fourth-largest in the world, is expected to slow down from 1.9% in the previous year to 0.9% in 2024. It lost its third-place position to Germany last year.

GDP

GDP measures the total value of all goods and services produced in a country within a given time period, such as a quarter or a year.
It includes goods and services that are sold in the market, as well as some non-market activities like education and defence services provided by the government.
GDP covers all the output produced within a country's borders and represents the final value of products and services that are bought by end-users.

International Monetary Fund (IMF):

The IMF was established in July 1944 at the United Nations Bretton Woods Conference.

It was created alongside the World Bank and both organizations are commonly known as the Bretton Woods twins.
The IMF's main objective is to stabilize the international monetary system, which allows countries to transact with each other through exchange rates and international payments.
The IMF releases two reports, the Global Financial Stability Report and the World Economic Outlook, which analyze and forecast global economic growth over the near and medium term.
The World Economic Outlook is published twice a year, in April and October, and is a survey of the IMF.