The International Monetary Fund (IMF) Raised India's Economic Growth Forecast For Fiscal Year 2025 To 7%, reported Economic Times.
In this way, the IMF maintains India's status as a country with the fastest growing economy. The fund links the increase in growth rates to an improved outlook for private consumption, particularly in rural areas.
However, the fund's forecast points to risks related to inflation, exchange rate volatility and trade tensions. This, according to IMF analysts, emphasizes the importance of informed policy decisions and multilateral cooperation.
IMF keeps India's FY2026 growth forecast at 6.5%.
Earlier, Reserve Bank of India (RBI) Deputy Governor Michael Debabrata Patra said that India has demonstrated high rates of economic growth and could become the world's second largest economy by 2031, not by 2048 as predicted. According to him, the South Asian republic also has the opportunity to become the largest economy by 2060. Patra noted that the government is focusing on macroeconomic and financial stability, which is important for the Indian rupee to reach the international level. He added that the RBI projects inflation to average 4.5% in 2024-25 and 4.1% in 2025-26.