IMF, World Bank Raise India's Growth Forecast for 2024-25

New Delhi- According to data released by the Ministry of Statistics and Programme Implementation on Friday, the growth rate of India's economy in the April-June quarter of 2024-25 was 6.7%, which is lower than the Reserve Bank of India's (RBI) forecast of 7.1%.

The growth rate of India in terms of nominal GDP was 9.7%, compared to 8.5% in the corresponding quarter of the previous fiscal year. This is a significant decline from the 8.2% growth rate recorded by India in the same period last year.

The RBI had projected a GDP growth rate of 7.2% for the entire financial year 2024-25, with subsequent quarterly projections set at 7.1% for Q1, 7.2% for Q2, 7.3% for Q3, and 7.2% for Q4. The growth rate of India in the financial year 2023-24, which stands at 8.2%, maintained its position as the country's fastest-growing major economy. This growth rate is lower than the 8.2% growth rate recorded in 2023-24, the 7.2% growth rate recorded in 2022-23, and the 8.7% growth rate recorded in 2021-22.

Several global rating agencies and multilateral organizations have revised their growth forecasts for India upward. The International Monetary Fund (IMF) increased its projection for India's 2024 growth to 7% in July, considering the country's status as the fastest-growing economy among emerging markets and developing economies. The IMF had initially projected a growth rate of 6.5% for 2024 but later revised it to 6.8% before making its most recent adjustment to 7%. The IMF attributed the growth to robust domestic demand and a rising working-age population.

The Economic Survey presented in Parliament also projected India's real GDP growth at 6.5-7% for 2024-25, with the Survey acknowledging that market expectations may be higher. Real GDP growth is the reported economic growth adjusted for inflation. The World Bank also revised its forecast for India's GDP growth in 2024-25, raising it by 20 basis points to 6.6% from its earlier projection of 6.4%. The World Bank noted that India will continue to be the fastest-growing among the world's largest economies, although the pace of expansion may moderate.

The growth rate of India's economy in the April-June quarter of 2024-25 was 6.7%, which is lower than the Reserve Bank of India's (RBI) forecast of 7.1%. This growth rate is a significant decline from the 8.2% growth rate recorded by India in the same period last year. The RBI had projected a GDP growth rate of 7.2% for the entire financial year 2024-