The International Monetary Fund (IMF) upgraded India’s economic growth forecast by 20 basis points (bps) to 7 per cent year-on-year basis for the current financial year 2024-25.
Earlier also in April, IMF has raised GDP forecast of the country by 30 bps to 6.8 percent in its World Economic Outlook.
The international organisation, in the latest Economic Outlook on Tuesday, said that the forecast for growth in India has been revised upward amid improved prospects for private consumption, particularly in rural areas.
With this, India continues to be the fastest-growing economy of the world.
On the other hand, IMF’s global growth projections are unchanged at 3.2 per cent for the calendar year 2024 and slightly higher at 3.3 per cent in 2025.
For China also, the IMF has revised the growth upward to 5 per cent for 2024 but it said that in 2025, China’s GDP is projected to slow to 4.5 percent, and to continue to decelerate over the medium term to 3.3 percent by 2029, because of headwinds from aging and slowing productivity growth.