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

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.