IMF has revised India's growth to 7 per cent from previous 6.8 per cent for the FY25 because of improved prospects for private consumption, particularly in rural areas in the first quarter of the FY25
The International Monetary Fund (IMF) has predicted a higher growth for India in fiscal year 2025 to 7\ per cent in a recent update to its World Economic Outlook. The previous estimates released in the month of April 2024 for the FY25 was 6.8 per cent.
"The forecast for growth in India has been revised upward, to 7 per cent, this year, with the change reflecting carryover from upward revisions to growth in 2023 and improved prospects for private consumption, particularly in rural areas," said United Nation's global financial agency.
The update in World Economic Outlook isn't just for India. IMF in the recently updated predictions has revised upward growth prospects for emerging markets and developing economies. The estimate is driven by robust economic activity in Asia.
The changed projection is based on stronger consumption and exports numbers in the first quarter of the year. Yet the agency mentioned that prospects for the next five years remain weak.
Gita Gopinath, Deputy Managing Director of IMF stated in a post on 'X', "Growth in India and China will account for almost half of the global growth in 2024."
The World Bank estimated the growth rate to be 6.6 per cent for India in FY25 which is lower than the IMF's estimate. The latest prediction made by Reserve Bank of India for the same fiscal year is 7.2 per cent, which is higher than IMF's recent estimate. Asian Development Bank's forecasts India growth at 7 per cent. World Bank has stated that India will remain the fastest-growing economy in the world.
IMF's forecast for the global economy still remains same at 3.3 per cent as mentioned in the report titled, "The Global Economy in a Sticky Spot."