India’s economic growth rate may be 7 percent in 2024-25, IMF releases new estimate
The Indian economy could grow at the rate of 7 percent in the financial year 2024-25. The International Monetary Fund has released the World Economic Outlook Growth Estimate. According to the IMF, India’s GDP is expected to be 7 percent in the current financial year. In its estimate in the month of July also, the IMF had expressed confidence in the economic growth rate being 7 percent. This is 0.2 percent more than the projection released in April 2024.
The IMF said in its Growth Outlook, GDP growth in India will be 7 percent in 2024-25 as compared to 8.2 percent in the financial year 2023-24, while GDP growth has been estimated to be 6.5 percent in 2025-26. According to the IMF, the pent-up demand seen during the Corona pandemic is now ending and the economy is now showing growth according to its potential. According to the International Monetary Fund, the global economy will show growth at the rate of 3.2 percent in 2024.
IMF Growth Forecast: 2024
The Reserve Bank of India has also projected the economic growth rate to be 7.2 percent in the current financial year. The World Bank has projected a growth rate of 7 percent. On the inflation front, the International Monetary Fund has said in its forecast that inflation will decrease globally. Inflation rate has been estimated to be 5.8 percent in 2024 as compared to 6.7 percent in 2023. In its forecast for India, the IMF said, inflation rate in India may be 4.4 percent in the financial year 2024-25 and is estimated to be 4.1 percent in the financial year 2025-26. The IMF said in its outlook, goods prices are now stabilizing but service price inflation is still high in many regions.
According to the IMF, the surge in commodity prices due to global tensions may delay interest rate cuts by central banks, which could impact fiscal policy and financial stability.
