IMF raises India's GDP growth forecast by 30 bps to 6.8% for FY25

The International Monetary Fund (IMF) has revised India's GDP growth projection for the financial year 2025 upwards to 6.8%, citing robust domestic demand. This increase follows a trend of positive revisions, with the IMF also raising projections for FY24 to 7.8%, compared to 6.7% in its previous report. Despite the IMF's optimistic outlook, it falls slightly below the Indian government's projection of 7% growth for FY25. Rating agencies like Fitch and Barclays have also adjusted their forecasts upwards to 7.8% for FY24, attributing the growth to strong domestic demand and sustained business and consumer confidence. However, the IMF has warned of potential challenges ahead, including rising crude oil prices and global supply chain disruptions, but overall, the Indian economy is expected to perform well in the coming years.

Globally, the IMF has raised its growth projection for 2024 by 10 basis points to 3.2%, highlighting the resilience of the world economy despite earlier concerns of recession. Advanced economies are anticipated to experience slightly faster growth, while emerging markets and developing economies are expected to maintain stable growth. It also emphasized the importance of significant global investments in building a green and climate-resilient future, indicating ongoing concerns about medium-term growth prospects and the need for sustainable development strategies.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.