IMF Forecasts India To Remain Fastest-Growing Major Economy In 2024

Following the IMF's World Economic Outlook, which predicts India to retain its status as the fastest-growing among major economies in 2024, experts have lauded the projections, emphasizing India's imminent rise to become the world's third-largest economy.

Economist Ashwini Rana remarked, "While the global economy faces recessionary trends, India's economy continues to expand unabatedly, poised to advance even further and inevitably claim the position of the world's third-largest economy."

Rana noted the continuous evolution of India's economy, citing the upward revision of growth projections by the IMF from 7.6 per cent to 7.8 per cent for the fiscal year 2023-24. He attributed this growth to robust domestic demand and a burgeoning working-age population.

Echoing similar sentiments, economist Ved Jain highlighted the significant jump in IMF's projections for India's growth from 6.5 per cent to 6.8 per cent for the calendar year 2024, underscoring the country's strong economic performance.

Jain emphasized the pivotal role of domestic consumption and purchasing power in driving India's growth, indicating a rise in both earnings and per capita income among Indian citizens.

According to the IMF, countries like India, with a demographic dividend, are poised to bolster global workforce growth, with a significant portion of new entrants expected from India and sub-Saharan Africa over the medium term.

The report also outlined China's growth forecast at 4.6 per cent for the current year and 4.1 per cent in 2025, while underscoring the consistently outperforming economic growth of the G20's emerging markets compared to advanced economies over the past two decades.

Recent data reveals India's economic growth at 7.8 per cent and 7.6 per cent during the preceding two quarters, with growth rates of 7.2 per cent in 2022-23 and 8.7 per cent in 2021-22, respectively.

Globally, the IMF projects a steady growth rate of 3.2 per cent in 2024 and 2025, noting the resilience of the global economy amidst returning inflation. Despite earlier apprehensions, the world managed to avert a recession, with the banking system largely resilient and major emerging market economies avoiding sudden halts, according to the IMF.

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