2024-04-18 20:31:22
New Delhi: Indian economy has got another booster. The International Monetary Fund (IMF) has changed its projections for India’s economic growth. It has said that the Indian economy will grow at the rate of 6.8 percent in the financial year 2024-25. In January, IMF had estimated 6.5 percent. However, the international institute has kept its growth forecasts for the financial year 2025-26 unchanged at 6.5 percent. Before IMF, many international organizations have changed their projections on India’s growth. On their lines, IMF has also changed its estimates. The IMF has predicted strong domestic demand and revival in the rural economy for the Indian economy. Such an outlook of the Monetary Fund for India’s economy is encouraging.
According to the IMF report, India’s growth is estimated to be 6.8 percent in 2024 and 6.5 percent in 2025. This increase reflects continued strength in domestic demand and a growing working-age population.
This prediction on growth of ADB and World Bank
Last week, the Asian Development Bank (ADB) had increased India’s growth rate estimate to 7 percent for the financial year 2024-25. Earlier this estimate was 6.7 percent. Earlier this month, the World Bank had projected 6.6 percent growth for the Indian economy in the financial year 2024-25. Earlier it was 6.4 percent.
Growth projections for 2023-24 also changed
IMF has also changed the growth estimates for the financial year 2023-24 to 7.8 percent. This is more than the government’s growth estimate of 7.6 percent. Strong growth in the manufacturing sector with double-digit growth in investment helped drive growth in the last financial year.
Experts have indicated that improvement in private capital expenditure will help maintain the momentum in the current financial year. On the inflation front, the IMF has kept the forecast for FY 2024-25 unchanged at 4.6 per cent. At the same time, the inflation rate is estimated to decline to 4.2% in the financial year 2025-26.
Along with this, the Monetary Fund has predicted that growth in China will slow down to 4.6 percent this year and 4.1 percent in 2025. In 2023 it was 5.2 percent. This slowdown has been attributed to increased consumption after the pandemic and reduced impact of factors like fiscal stimulus and slowdown in real estate. According to the report, global growth is expected to continue at the same pace in the years 2024 and 2025. The estimated global growth in the year 2023 is 3.2 percent.