IMF boosts India’s FY24 GDP growth forecast to 6.3 per cent

IMF revised China’s growth forecast downward by 0.2 percentage points

International Monetary Fund (IMF) on Tuesday raised India's GDP projection marginally by 0.2 per cent to 6.3 per cent even as it slashed the global growth forecast to 3 per cent. IMF in July had estimated India's GDP forecast at 6.1 per cent for 2023-24. However, this is lower than the RBI's latest estimate of 6.5 per cent for the current financial year.

However, India's growth is projected to be higher than China's, the third-largest economy in the world. IMF's 'World Economic Outlook' revised China's growth forecast downward by 0.2 percentage points for 2023 and by 0.3 percentage points for 2024 to 5 per cent and 4.2 per cent, respectively.

With the property market crisis in that country, lower investment is the main contributor to the revision, it said. "Growth in India is projected to remain strong, at 6.3 per cent in both 2023 and 2024, with an upward revision of 0.2 percentage point for 2023, reflecting stronger-than-expected consumption during April-June," the 'World Economic Outlook' said.

Last week, the World Bank retained India's growth forecast at 6.3 per cent for the current financial year on the back of robust service activities despite global headwinds.

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