Business News / IMF approves India's progress, growth estimates increased so much

Zoom News : Apr 17, 2024, 08:45 AM
Business News: Many international institutions one after the other are giving their approval regarding India's GDP growth rate. Most of the global institutes have either kept their estimates regarding India's growth rate stable or have increased them. Due to this, India has become the fastest growing economy in the world as well as the most attractive investment destination at the global level. A new name has been added to this series of International Monetary Fund (IMF), know how much progress India will make…

The International Monetary Fund (IMF) increased India's GDP growth rate estimate for 2024 from 6.5 percent to 6.8 percent in view of the increasing domestic demand and increasing population of working age in the country. IMF said on Tuesday that India remains the fastest growing economy in the world. Earlier, the World Bank had also estimated India's GDP growth to be 6.6 percent.

During the same period, IMF has estimated China's GDP growth rate to be 4.6 percent. IMF has said this in its latest report of ‘World Economic Outlook’. While India's growth rate is going to be 6.8 percent in 2024, it is expected to be 6.5 percent in 2025 also.

Annual meeting of IMF and World Bank to be held soon

This report of IMF has come at a time when the annual spring meetings of IMF and World Bank are going to be held shortly. The report said that the growth rate in emerging and developing Asia is expected to decline from last year's estimated 5.6 percent to 5.2 percent in 2024 and 4.9 percent in 2025. But on the contrary, India's growth rate is going to increase.

The estimate given by IMF regarding India's growth rate is slightly better than the January estimate. In its January report, IMF had estimated India's growth rate to be 6.5 percent for 2024.

China will lag behind in terms of growth

IMF has said that China's growth rate will decline. It was 5.2 percent in 2023, which is expected to slow down to 4.6 percent in 2024 and 4.1 percent in 2025. The IMF has attributed this slowdown to the post-Covid situation, less impact of factors like fiscal stimulus and slowdown in real estate.

The growth rate of the global economy is expected to remain the same in 2024 and 2025 as before. The global GDP growth rate in 2023 is estimated to be 3.2 percent. IMF Chief Economist Pierre-Olivier Gorrinches says that despite the disappointing projections, the global economy remains strong. Growth is stable. At the same time, inflation is coming down as fast as it had increased.