India’s macro fundamentals ‘strong’; growth ‘very good’: IMF

/2 min read

ADVERTISEMENT

IMF’s Asia and Pacific Dept director says investment in China and India could contribute disproportionately to growth — much of it public, especially in India
India’s macro fundamentals ‘strong’; growth ‘very good’: IMF
India's economy had recorded 7.2% GDP growth in FY23, lower than 9.1% in FY22. Credits: Getty Images

The International Monetary Fund (IMF), which recently released its World Economic Outlook (WEO) for April 2024, has again applauded India for “strong economic numbers” after it projected the country's economy to grow at the fastest pace.

Krishna Srinivasan, Director, Asia and Pacific Department, IMF has said that India's macro fundamentals look “pretty good” and that overall, the country's economy is doing very well. "Growth at 6.8% is very good. Inflation's coming down. We have to make sure that inflation comes down to the target and it is there on a durable basis," Srinivasan told a national news agency during an interview.

During the opening remarks at the press conference on the Regional Economic Outlook for Asia and Pacific in Washington, DC on April 18, 2024, he said that growth surprised with the upside in the second half of 2023, as robust domestic demand fuelled activity especially in emerging Asian economies. "Malaysia, the Philippines, Vietnam, and, most notably, India recorded sizeable positive growth surprises," he said.

fortune magazine cover
Fortune India Latest Edition is Out Now!
The Year Of EV Launches

September 2025

2025 is shaping up to be the year of electric car sales. In a first, India’s electric vehicles (EV) industry crossed the sales milestone of 100,000 units in FY25, fuelled by a slew of launches by major players, including Tata Motors, M&M, Ashok Leyland, JSW MG Motor, Hyundai, BMW, and Mercedes-Benz. The issue also looks at the challenges ahead for Tata Sons chairman N. Chandrasekaran in his third term, and India’s possible responses to U.S. president Donald Trump’s 50% tariff on Indian goods. Read these compelling stories in the latest issue of Fortune India.

Read Now

In this fiscal year, Srinivasan said in China and India, the IMF expects investment to contribute disproportionately to growth — much of it public, especially in India. "In Emerging Asia outside China and India, robust private consumption will remain the main growth engine."

The IMF has raised India's economic growth forecast to 6.8% in 2024-25 and 6.5% in 2025-26. The IMF’s growth projections are up from its previous forecast of 6.7% for 2024.

The "robustness" of the Indian economy reflects "continuing strength" in domestic demand and a rising working-age population, said the Washington, D.C.-based global financial agency.

Growth in emerging and developing Asia is expected to fall from an estimated 5.6% in 2023 to 5.2% in 2024 and 4.9% in 2025, a slight upward revision compared with the January 2024 WEO update of the IMF.

About China, the IMF says the country's growth is projected to slow from 5.2% in 2023 to 4.6% in 2024 and 4.1% in 2025 as the positive effects of one-off factors –– including the post-pandemic boost to consumption and fiscal stimulus –– ease and weakness in the property sector persist.

Among major economies, the IMF's latest growth forecast for 2024 estimated the US economy to grow at 2.7%, Germany 0.2%, France 0.7%, Italy 0.7%, Spain 1.9%, UK 0.5%, Japan 0.9%, the UK 0.5%, Japan 0.9%, China 4.6%, Russia 3.2%, Brazil 2.2%, Mexico 2.4%, KSA 2.6%, Nigeria 3.3% and South Africa 0.9%.

Notably, the government's second advance estimates have placed the real GDP growth at 7.6% for 2023-24, the third successive year of 7% or higher growth. The RBI, in its latest note, said the headwinds from protracted geopolitical tensions and increasing disruptions in trade routes pose risks to the overall outlook. "The real GDP growth for the current financial year 2024-25 is projected at 7%," the central bank said this month.

Fortune India is now on WhatsApp! Get the latest updates from the world of business and economy delivered straight to your phone. Subscribe now.

Related Tags