IMF raised India's growth forecast for the current financial year to 6.1%

The International Monetary Fund (IMF) in its recently released ‘ World Economic Outlook’ report  has raised India's growth forecast, projecting a 6.1 per cent growth in gross domestic product (GDP) in 2023-24. 

Earlier in the World Economic Outlook released in April, the IMF had projected India's GDP to grow at 5.9 per cent in 2023-24.

Key points of the report:

• The 0.2 percentage points increase reflects a stronger-than-expected growth momentum in the fourth quarter of 2022 as a result of stronger domestic investment, according to the IMF's World Economic Outlook report.

• The IMF has kept the GDP growth forecast for the fiscal year 2024-2025 unchanged at 6.3 per cent.

• According to the World Economic Outlook report, India will continue to be the fastest growing economy, while neighboring China is projected to grow at 5.2% in 2023 and 4.5% in 2024.

• In the World Economic Outlook report, the IMF raised its forecast for global growth output in 2023 to 3% from its previous forecast of 2.8%.

• Advanced economies will continue to decelerate in growth from 2022 to 2023, due to weaker manufacturing as well as specific factors, offset by stronger services activity.

International Monetary Fund (IMF):

• Established: July 1944

• Headquarters: Washington DC, United States

• Member countries: 190

• India took its membership only on 27 December 1945.

• Managing Director: Kristalina Georgieva (European Union)

• First Managing Director: Camille Gut (Belgium)

Some important reports released by IMF:

• Global Financial Stability Report

• World Economic Outlook

Expected growth rate of Indian GDP forecasted by various agencies (as on 1 August 2023)