India set to remain fastest growing among major economies in 2024, IMF projects
Apr 17, 2024
NEW DELHI: India is set to remain the fastest growing among major economies in 2024, according to International Monetary Fund's latest World Economic Outlook.
IMF, in its latest outlook, raised India's growth projections for 2024 from 6.5 per cent to 6.8 per cent.
For 2025, the IMF has kept India's growth rate projection at 6.5 per cent.
It attributed robustness and strength in domestic demand and a rising working-age population behind its growth projections.
Countries with a demographic dividend could help support growth in the global workforce, in which nearly two in every three new entrants over the medium term will come from India and sub-Saharan Africa, IMF noted in its latest World Economic Outlook report.
The report said that China is expected to grow at 4.6 per cent this year and 4.1 per cent in 2025.
Economic growth in the 10 emerging markets of the Group of Twenty (G20) has consistently outperformed that of advanced economies over the past two decades.
As their share of world GDP has more than doubled since 2000, Argentina, Brazil, China, India, Indonesia, Mexico, Russia, Saudi Arabia, South Africa, and Türkiye (G20 emerging markets) have continued to integrate into the global economy-notably through trade and global value chains.
According to India's official data, the country grew at a massive 8.4 per cent during the October-December quarter of the financial year 2023-24 and the country continued to remain the fastest-growing major economy. The Indian economy grew 7.8 per cent and 7.6 per cent during the preceding two quarters April-June and July-September.
India's economy grew 7.2 per cent in 2022-23 and 8.7 per cent in 2021-22, respectively.
Overall, the IMF pegged global growth at 3.2 per cent in 2024 and 2025 respectively. It noted that the global economy remains remarkably resilient, with growth holding steady as inflation returns to target.
Despite many gloomy predictions, the world avoided a recession, the banking system proved largely resilient, and major emerging market economies did not suffer sudden stops, the IMF said.
