IMF Upgrades India’s Growth Forecast for FY24 to 6.7% in Latest World Economic Outlook Update

New Delhi: In its World Economic Outlook Update for January 2024, the International Monetary Fund (IMF) has revised India’s growth forecast for the fiscal year 2023-24 upward to 6.7% from the previous estimate of 6.3%. This positive revision is attributed to the robust performance witnessed in the second quarter of the Gross Domestic Product (GDP).

The IMF’s medium-term (potential) GDP growth projection has also been upgraded to 6.5%, up from the earlier forecast of 6.3%. This upward revision is justified by factors such as strong public investment, favorable outcomes in the latest Periodic Labor Force Survey (PLFS) report, and adjustments made to the IMF’s model.

India’s consistent growth momentum has positioned it as the fastest-growing economy among the major economies globally. The country’s economic resilience is evident, with the IMF recognizing the positive labor market outcomes and strong public investment contributing to the overall economic health.

Additionally, the IMF views India’s external sector as robust and anticipates a narrowing of the current account deficit for the fiscal year 2023-24. The revised projection places the current account deficit at 1.6% of GDP, down from the earlier estimate of 1.8%.

India’s economic performance continues to be a bright spot on the global stage, reaffirming its status as a key driver of global economic growth. The upward revision by the IMF underscores the nation’s ability to navigate challenges and maintain a positive trajectory in the face of evolving economic dynamics.