NEW DELHI: The International Monetary Fund (IMF) on Tuesday raised India growth projection for 2024-25 by 20 basis points to 7% amid a boost in private consumption, especially in rural areas.
“The forecast for growth in India has been revised upward, to 7%, this year, with the change reflecting carryover from upward revisions to growth in 2023 and improved prospects for private consumption, particularly in rural areas,” IMF’s World Economic Outlook said.
In 2025-26, the IMF expects growth to slow to 6.5%, the same as what was projected in its April review. GDP expanded at 8.2% in 2023-24, which was higher than the 7% in 2022-23, helped by a greater than expected expansion of 7.8% in the fourth quarter, as per the provisional estimates of GDP growth released by the National Statistical Office (NSO). The RBI has projected the Indian economy to grow at 7.2% in FY25.
RBI Governor Shaktikanta Das last month said India was moving towards a path where 8% GDP growth could be sustained on a yearly basis for a longer term. Meanwhile, the IMF report has upgraded growth forecast for China for calendar year 2024 by 40bps to 5% on rebound in private consumption and strong exports in Q1.