The International Monetary Fund (IMF) has raised its forecast for India’s economic growth for 2023-24 to 6.3% from 6.1% predicted in its July report. Its October 2023 World Economic Outlook, released on Tuesday, also projects a 6.3% expansion in 2024-25. It was mostly stronger-than-expected consumption from April to June that earned this bump-up, though it remains below the Reserve Bank of India’s (RBI) 6.5% estimate for 2023-24.
Increased confidence in India’s economy comes amid some global gloom. The IMF has left its world projection of output growth unchanged at 3% for 2023, while lowering it for 2024 by 10 basis points. So, India is expected to be an outperformer for at least another year. On inflation, the IMF report said, “Monetary policy projections are consistent with achieving [RBI’s] inflation target over the medium term.”
This sounds impressive, although the newly-started war between Israel and Hamas, which has sent crude oil prices surging, poses a new set of risks. How long the fighting goes on and whether other countries get involved would be key. Uncertainty, like inflation, needs to fall and stabilize across the world.
“Exciting news! Mint is now on WhatsApp Channels 🚀 Subscribe today by clicking the link and stay updated with the latest financial insights!” Click here!
Download The Mint News App to get Daily Market Updates.
More
Less
Updated: 10 Oct 2023, 09:11 PM IST
