IMF - India ranks among the strong performers

India continues to shine as one of the world's strongest economies, according to the International Monetary Fund. In their recent report, they stated India Fastest growing economy (IMF). They also forecasted a 6.5 percent growth rate for India in 2024. This places India ahead of China, whose growth projection stands at 4.6 percent for the same period.

Pierre-Olivier Gourinchas, Chief Economist IMF highlighted India's impressive performance. He noticed a sharp revision for the fiscal year ending in 2024 and an additional 0.3 percentage point upgrade for the following fiscal year. He emphasised that India is on a positive trajectory.

The IMF's World Economic Outlook predicts India's growth to remain robust at 6.8 percent in 2024 and 6.5 percent in 2025. This strength is attributed to sustained domestic demand and a growing working-age population.

While emerging and developing Asia faces a slight growth slowdown, India shines as a symbol of stability and advancement. Challenges such as reduced post-pandemic consumption and persistent property sector issues contribute to China's anticipated growth deceleration.

On a global scale, economic growth is forecasted to maintain its momentum, with a projected 3.2 percent growth rate for 2023 continuing through 2024 and 2025. The IMF views this as a positive development but emphasises the necessity of policy adjustments to manage inflation and sustain growth.

Daniel Leigh, Division Chief of the IMF Research Department, highlighted the need for balanced monetary and fiscal policies to control inflation. He also emphasised the potential for further growth through reforms that encourage foreign investment and enhance exports, ultimately boosting job opportunities and labour force participation. In comparing India and China's growth trajectories, Leigh's insights shed light on the broader economic dynamics shaping the region.