The International Monetary Fund (IMF) has raised India’s growth projections for 2024 from 6.8 per cent to 7 per cent, making it the fastest-growing major economy in emerging markets and developing economies. The IMF attributed this growth to the robustness of domestic demand and a rising working-age population in India. According to the IMF, both India and China are expected to account for almost half of global growth in 2024.
India’s GDP grew at an impressive rate of 8.2 per cent during the fiscal year 2023-24, maintaining its position as the fastest-growing major economy. The Reserve Bank of India has raised its GDP forecast for 2024-25 to 7.2 per cent from 7 per cent earlier. The World Bank also revised India’s GDP growth forecast for the current fiscal year to 6.6 per cent, up from its earlier projection of 6.4 per cent. Similarly, Morgan Stanley, the United Nations, Moody’s Ratings, OECD, and the Asian Development Bank have all raised their growth projections for India in 2024.
The IMF also revised China’s growth forecast to 5 per cent in 2024, primarily due to a rebound in private consumption and strong exports in the first quarter. The IMF has upwardly revised the growth forecast for emerging market and developing economies, mainly driven by stronger activity in Asia, particularly in China and India. India’s upward growth trend is expected to continue into 2025, with the IMF projecting a growth rate of 6.5 per cent for the year.
India’s strong economic growth has been attributed to increased public investments and resilient private consumption. The government’s efforts to boost the economy through various policies and initiatives have also played a significant role in driving growth. With positive projections from various international organizations and financial institutions, India is poised to maintain its position as one of the fastest-growing economies in the world.
Overall, the outlook for India’s economy in 2024 looks positive, with various international organizations and financial institutions predicting strong growth. The country’s resilience in the face of global challenges and its focus on domestic demand and investment are expected to further strengthen its economic growth. As India continues to be a key player in global economic growth, investors and businesses are likely to see opportunities for expansion and investment in the country.
