IMF Raises India’s GDP Growth Forecast to 6.7 Percent for Current Financial Year

New Delhi: The International Monetary Fund (IMF) has revised its GDP growth projection for India, upgrading it to 6.7 percent for the current financial year. This marks a 40 basis points increase from its previous forecast of 6.3 percent. In its latest World Economic Outlook report, the IMF also elevated India’s medium-term GDP growth to 6.5 percent, a 20 basis point improvement from its October 2023 forecast, applicable for the years 2025 and 2026.

The positive adjustments are attributed to robust public investment and favorable labor market outcomes, according to the IMF. Additionally, the agency anticipates a reduction in India’s current account deficit projection for the financial year 2024 from 1.8 percent of GDP to 1.6 percent.

Highlighting India as the fastest-growing economy among major global economies, the IMF underlines its confidence in India’s economic trajectory. In the previous financial year (2023), India’s GDP had expanded by 7.2 percent over the preceding year, reinforcing its position as a key player in the global economic landscape.