IMF Says India To Become Fastest-Growing Economy, Predicts 6 % Growth For This Fiscal

The IMF revised its 2023 global growth projections in response to cooling economic activity due to higher interest rates but warned that a sharp rise in financial system turmoil might push output to near recessionary levels.

New Delhi: The International Monetary Fund (IMF) on Friday projected that India would be the fastest-growing economy in the world, despite confronting considerable challenges such as financial sector turmoil, inflationary pressures, effects of the Russia-Ukraine war, and the persistent impact of the Covid-19 pandemic over the past three years. The IMF said this in its flagship World Economic Outlook report. IMF predicted 6 % growth for the country for this fiscal year.

The IMF had on April 11 released its latest World Economic Outlook report, predicting that the Indian economy will grow by 5.9 per cent in the current fiscal year, making it the fastest-growing economy in the world.

However, the IMF also warned that disruption in the financial system could have a detrimental effect on overall global growth.

Meanwhile, the IMF revised its 2023 global growth projections in response to cooling economic activity due to higher interest rates but warned that a sharp rise in financial system turmoil might push output to near recessionary levels.

Projections for global economic growth in 2023 were reduced to 2.8 per cent. It was 0.1 percentage point less from the last IMF update in January and a 0.6 percentage point decrease from global economic growth in 2022.

The IMF predicted global real GDP growth at 2.8 per cent for 2023 and 3 per cent for 2024 in its latest World Economic Outlook report. It marks a distinct slowdown from 3.4 per cent growth in 2022.

Despite facing formidable challenges, India stands tall and steadfast, emerging as a beacon of resilience in the global economy. She has emerged relatively unscathed, although the report lowered India’s growth projection to 5.9 per cent. The last World Economic Outlook report had placed it at 6.1 per cent. The IMF’s bi-annual report observed that India’s headline retail inflation is expected to ease up, from 6.7 per cent in the previous year to 4.9 per cent in 2023-24. This is a clear indication of India’s economic prowess and its unwavering determination to overcome even the toughest of obstacles.