Indian Economy: IMF projects India as fastest growing economy yet again, raises concerns over China

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India will emerge as the fastest-growing economy yet again, the International Monetary Fund (IMF) in its growth forecast for 2024 has predicted. Indian economy will have a robust growth of 6.5 per cent, the agency predicted.

IMF is a major financial agency of the United Nations, and an international financial institution based in Washington DC, United States which published international economic research reports.

Meanwhile, Ministry of Finance in its monthly review report also said that the Indian economy is projected to grow close to 7 per cent in the financial year 2024-25 which starts this April.

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ANI reported that India's economy grew 7.2 per cent in 2022-23 and 8.7 per cent in 2021-22. The Indian economy is expected to grow 7.3 per cent in the current financial year 2023-24, remaining the fastest-growing major economy.

The robustness seen in domestic demand -- private consumption and investment -- traces its origin to the reforms and measures implemented by the government over the last 10 years, said the report issued by the Department of Economic Affairs.

Predicting on other major economies, the IMF said they will have a modest growth. As per the report, the U.S will grow at 2.1 per cent, Germany will grow at 0.5 per cent, France at 1 per cent, Japan at 0.9 per cent and China at 4.6 per cent.

The IMF said that with disinflation and steady growth, the risks to global growth are broadly balanced and there is a possibility of a 'soft landing'.

ANI reported that, "Global growth is projected at 3.1 per cent in 2024 and 3.2 per cent in 2025, with the 2024 forecast 0.2 percentage point higher than that in the October 2023 World Economic Outlook (WEO) on account of greater-than-expected resilience in the United States and several large emerging market and developing economies, as well as fiscal support in China," the IMF statement read.

It also highlighted that a spike in new commodity price spikes from geopolitical shocks -- including continued attacks in the Red Sea -- and deepening property sector woes in China could also cause growth disappointments, ANI report said.