IMF predicts Indis’s GDP growth forecast to be 6.3%

International Monetary Fund’s (IMF) has predicted India’s economic growth in the current fiscal year to be 6.3% compared to the previous estimate of 6.1%, Prime Minister Narendra Modi hailed India as a shining global example.

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The International Monetary Fund (IMF) has raised its projection for India’s economic growth in the current fiscal year to 6.3%, up from the earlier estimate of 6.1%. In response, Prime Minister Narendra Modi lauded India as a leading global success story.

“Powered by the strength and skills of our people, India is a global bright spot, a powerhouse of growth and innovation. We will continue to strengthen our journey towards a prosperous India, further boosting our reforms trajectory,” said PM Modi.

The growth outlook for India is robust, expected to reach 6.3% in both 2023 and 2024. This projection for 2023 has been revised upward by 0.2 percentage points, driven by stronger-than-anticipated consumption from April to June, according to IMF. The Reserve Bank of India has projected consumer price index (CPI)-based inflation for the current fiscal year at 5.4% while GDP growth is seen at 6.5%.

Monetary policy projections are consistent with achieving the Indian central bank’s inflation target over the medium term. The country’s current account deficit is expected to remain at 1.8% of GDP in FY24 and FY25, IMF added.