NEW DELHI: The International Monetary Fund (IMF) has revised upwards India’s growth projection for 2023-24 by 0.2 percentage points to 6.1%. The international agency attributes the upward revision to ‘momentum from stronger-than-expected growth in the fourth quarter of FY23 as a result of stronger domestic investment’.
The IMF in its April World Economic Outlook report had projected the Indian GDP to grow at 5.9%. India’s central bank – the Reserve Bank of India – has projected India’s FY24 real growth rate at 6.5%, which is in line with the government’s growth estimate. The World Bank has estimated India’s GDP growth rate for the current financial year at 6.3%.
The IMF has also revised the global growth by 20 basis points to 3% in 2023 from its earlier estimate of 2.8%. However, it has not changed its 2024 global GDP growth estimate at 3%. “The forecasts for 2023 and 2024 remain well below the historical (2000–19) annual average of 3.8%. It is also below the historical average across broad income groups, in overall GDP as well as per capita GDP terms,” the IMF said in its latest World Economic Outlook report.
As per the report, advanced economies continue to drive the fall in growth from 2022 to 2023, with weaker manufacturing, as well as idiosyncratic factors offsetting stronger services activity.