India GDP Growth Forecast: There is good news for India on the economic front. Before the presentation of the budget on February 1, the International Monetary Fund (IMF) has increased India’s GDP growth forecast by 0.20% to 6.5 percent for the financial years 2024-25 and 2025-26. Earlier this estimate was given as 6.3 percent. Along with this, the GDP estimate for the financial year 2023-24 has been given at 6.7%.
IMF has said in the January update of the World Economic Outlook that India’s economy will grow at a rate of 6.5 percent in the next financial year i.e. 2024-25. Let us tell you that earlier the Finance Ministry had said in its report ‘The Indian Economy: A Review’ before the budget that India’s GDP can grow at the rate of 7% next year.
Domestic demand is increasing rapidly in India
The IMF has said in its World Economic Outlook report that the growth rate in India is expected to remain strong in both 2024 and 2025. The biggest reason behind this is the rapidly increasing domestic demand. Due to the steps taken by the government in the last 10 years, private consumption and investment have strengthened. Steps taken to boost manufacturing and investment in infrastructure have also increased.
Situation is not good for the global economy
At the same time, the IMF has increased the growth forecast for the global economy for 2024 to 3.1 percent from the earlier estimated 2.9 percent. It is expected to increase marginally to 3.2 in 2025. According to IMF Chief Economist Pierre-Olivier Gorinchas, the pace of growth is slow and further turmoil may be seen. New geopolitical tensions, financial concerns and the risk of inflation are being seen as a threat to the global economy. The IMF has also asked major central banks around the world to avoid haste in relaxing interest rates.
Indian economy will grow at the fastest pace in the world
According to the latest growth estimates of IMF, India’s growth rate in the next two years will be 6.5 percent, which is the highest in the world. At the same time, in 2024-25, America’s growth is expected to be 1.7 percent, China’s 4.1 percent, Brazil’s 1.9 percent, Britain’s 1.6 percent, South Africa’s 1.3 percent and Japan’s 0.8 percent.
