On Tuesday, the International Monetary Fund (IMF) kept its projection for India's GDP growth at 7% for the current fiscal year ending March 31, 2025. However, the global lender sees India's growth rate moderating to 6.5% in the fiscal year 2025-26.

In its World Economic Outlook, the IMF said India's economy is expected to slow down from a growth rate of 8.2% in 2023 as pent-up demand accumulated during the pandemic has been exhausted.

The IMF also raised its 2024 growth estimate for the US to 2.8%, up from the previous forecast of 2.6%. The IMF's 2025 projection for the US economy is 2.2%, compared to the July estimate of 1.9%.

Global growth remains steady at 3.2% for both 2024 and 2025, according to the IMF.

However, the IMF lowered China's growth outlook for 2024 to 4.8% from 5%, while maintaining its 2025 projection of 4.5%.

The IMF's World Economic Outlook also warned about risks to the global economy, including high debt levels, geopolitical tensions, and trade volatility.

During annual meetings with the World Bank in Washington, the IMF urged reforms to address key concerns.