International Monetary Fund (IMF) has increased its GDP growth estimate for India to 6.7 percent for the current financial year. It is 40 basis points higher than its previous forecast of 6.3 percent. In its latest World Economic Outlook report, IMF also raised India’s upward medium-term GDP growth to 6.5 percent, a 20 basis point upgrade from its October 2023 forecast, for years 2025, 2026.
The IMF said results are reflecting a strong public investment, and positive labor market outcomes. The IMF said India will narrowing its current account deficit projection for financial year 24 from 1.8 percent of GDP to 1.6 percent.
The agency said India continues to be the fastest-growing economy among the major economies of the world. In Financial Year 23, India’s GDP had expanded by 7.2 percent over the previous year.