IMF Ups India’s 2024 Growth Forecast to 6.8%, Maintains Lead Over China

New Delhi: The International Monetary Fund (IMF) upgraded India’s economic growth projection for 2024 to 6.8%, citing robust domestic demand and a growing working-age population. This keeps India as the world’s fastest-growing major economy, outpacing China’s projected growth of 4.6%.

The IMF’s World Economic Outlook, released ahead of its spring meetings, predicts India’s growth to remain strong at 6.8% in 2024 and 6.5% in 2025. This resilience is attributed to continued strength in domestic consumption and a rising workforce.

The IMF’s January update had previously forecasted India’s growth at 6.5% for 2024. Meanwhile, China’s growth is projected to slow down from 5.2% in 2023 to 4.6% in 2024 and 4.1% in 2025 due to easing one-off factors and persistent weaknesses in the property sector.

Global growth is forecast to hold steady at 3.2% in 2024 and 2025, after an upward revision of 0.1 percentage points from the January 2024 WEO Update.

The IMF’s chief economist, Pierre-Olivier Gourinchas, stressed the importance of policymakers prioritizing measures for greater economic resilience, including strengthening public finances and revitalizing growth prospects.