IMF raises India’s GDP growth forecast to 6.3%
Sandeep Dikshit
New Delhi, October 10
The International Monetary Fund (IMF) has marginally raised the GDP growth forecast for India and lauded the US for its “remarkable strength” while cutting the outlook for China and the eurozone.
The IMF’s latest ‘World Economic Outlook’ released on Tuesday unchanged the forecast for global real GDP growth in 2023 at 3.0% but reduced its 2024 forecast slightly to 2.9% from the previous expectation of 3%. The Organisation for Economic Cooperation and Development (OECD) has also raised India’s GDP growth projection to 6.3% from the previous estimate of 6%.
The IMF raised India’s GDP projection marginally by 0.2% to 6.3% as against its July forecast of 6.1% for 2023-24. However, this is lower than the RBI’s latest estimate of 6.5% for the current financial year. Last week, the World Bank retained India’s growth forecast at 6.3% for the current financial year on the back of robust service activities despite global headwinds.
Yet, India will remain the fastest growing economy in the world with China expected to clock a GDP growth rate of 5%. “Growth in India is projected to remain strong, at 6.3% in both 2023 and 2024, with an upward revision of 0.2 percentage point for 2023, reflecting stronger-than-expected consumption during April-June,” said the IMF report.
The IMF report, which was locked down on September 26, did not account for the Israel-Hamas conflict but expressed concerns about risks related to China’s property crisis, volatile commodity prices, geopolitical fragmentation and a resurgence in inflation.
Reacting to the IMF forecast, PM Narendra Modi on Tuesday said India was a powerhouse of growth and innovation. “Powered by the strength and skills of our people, India is a global bright spot. We will continue to strengthen our journey towards a prosperous India, further boosting our reforms trajectory,” the PM said on X, citing the IMF figures.
World Economic Outlook
The IMF on Tuesday unchanged the forecast for global real GDP growth in 2023 at 3.0% but reduced its 2024 forecast slightly to 2.9% from the previous expectation of 3%
