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The International Monetary Fund (IMF) has once again revised its growth projection for India, now forecasting a robust 7% expansion for the country’s economy in 2024. This marks an upward adjustment from the previous estimate of 6.8% and reflects India’s continued position as the fastest-growing major economy.
Looking ahead to 2025, the IMF anticipates India’s growth rate to remain strong at 6.5%. This positive outlook is supported by robust domestic demand and a growing working-age population, factors that contribute to the country’s economic resilience.
Gita Gopinath, First Deputy Managing Director of the IMF and former Chief Economist, highlighted the significant contribution of India and China to global growth. Together, these two countries are expected to account for almost half of the world’s economic growth this year.
Emerging market and developing economies, particularly those in Asia, are experiencing stronger growth than initially projected. China’s growth forecast for 2024 has been revised upward to 5%, attributed to a rebound in private consumption and robust exports. Similarly, India’s improved growth outlook for 2024 is linked to strong carryover effects from 2023 and increased private consumption, especially in rural areas.
India’s economic performance in recent years has been impressive. Official data from the Indian government showed an 8.2% GDP growth rate for the financial year 2023-24, outpacing other major economies. This follows strong growth rates of 7.2% and 8.7% in the previous two years.
The Reserve Bank of India, in its latest monetary policy meeting, further bolstered confidence by raising the GDP forecast for 2024-25 to 7.2%. This aligns with upward revisions by the World Bank, which now projects India’s GDP growth at 6.6% for the same period, a 20-basis-point increase from their earlier estimate.
Leading financial institutions, such as Morgan Stanley, share this optimistic outlook, forecasting a 6.8% growth rate for India in 2024. The United Nations, Moody’s Ratings, and the Organisation for Economic Co-operation and Development (OECD) have also raised their projections, citing strong public investment and resilient private consumption as key drivers.
The Asian Development Bank (ADB) joins the chorus of institutions recognizing India’s economic prowess, upgrading its GDP growth forecast for the country to 7% for the financial year 2024.
Asia’s Economic Prowess: How India’s Projected 7.2% Growth Outshines the West
Asian earnings growth is set to surge ahead of its US and European counterparts, according to a recent analysis by CLSA, citing projections from Bloomberg. The report forecasts a significant acceleration in the region’s economic growth, outpacing that of developed markets in both 2023 and 2024. This promising outlook underscores the resilience and potential of Asian markets, presenting lucrative opportunities for investors and businesses alike.
The World Economy Through India’s Lens
The Indian economy is on a high-growth trajectory, and its influence on the global ecosystem is undeniable. With its rapid expansion, the economic order is shifting towards the Global South. This shift is a testament to the rising power of emerging markets and their impact on the world stage.
