IMF Raises India’s FY24 GDP Growth Forecast To 7.8%, Higher Than The Government’s Projection.
The International Monetary Fund (IMF) has projected that India’s economy will grow by 6.8% in the current fiscal year, driven primarily by public investment.
The IMF has revised its growth forecast for India upward from its January projection of 6.5% to 6.8%. Additionally, the IMF has raised its outlook for India’s FY24 growth to 7.8%, surpassing the government’s estimate of 7.6%.
The IMF report highlighted that “India and the Philippines have been the source of repeated positive growth surprises, supported by resilient domestic demand.”
It stated, “In China and India, we expect investment to contribute disproportionately to growth—much of it public, especially in India.
Regarding inflation, the IMF anticipates a more favorable situation for emerging markets, where inflation is already at or near the target. The report stated, “Core inflation is largely expected to remain contained. As for headline inflation, several economies may experience further reductions due to lower energy prices while in others (for example, India), food price pressures—especially for rice—may slow headline disinflation.”
India’s inflation rate fell to a 10-month low of 4.9% in March, although food inflation remained persistent above 8%.
