IMF increased India’s growth rate estimate for 2024
Indian economy is estimated to grow at the rate of 6.8 percent in 2024. The International Monetary Fund has released the growth estimates of the World Economic Outlook. The IMF has increased its growth forecast for India to 6.8 percent GDP growth rate in 2024, which is higher than the estimate of 6.5 percent released in January 2024. IMF has not made any change in its growth forecast for 2025 and the growth rate is estimated to be 6.5 percent.
Releasing the World Economic Outlook report, IMF said that growth in India will remain strong and the GDP is expected to be 6.8 percent in 2024 and 6.5 percent in 2025. According to IMF, this strength is being seen in India’s economic growth due to strength in domestic demand and increase in working population. IMF has increased India’s economic growth forecast for the financial year 2023-24 to 7.8 percent, which is higher than the government’s own estimate of 7.6 percent.
IMF has estimated the inflation rate in India to be 4.6 percent in 2024 and 4.2 percent in 2025. IMF’s estimate is slightly higher than the Reserve Bank of India’s estimate of 4.5 percent. According to the retail inflation data released for March 2024, the retail inflation rate has come down to 4.85 percent, although the food inflation rate has been 8.52 percent.
While IMF has increased the estimate of India’s economic growth rate, it has reduced the estimate of China’s growth rate. According to IMF, China’s economy will show growth at the rate of 4.6 percent in 2024 and 4.1 percent in 2025, which was 5.2 percent in 2023.
