The International Monetary Fund (IMF) significantly increased its growth prediction for India, predicting that the country’s GDP will expand by 6.1% this fiscal year.
IMF raises India’s growth forecast: In comparison to its April forecast, it increased its outlook by 0.2 percentage points, the IMF said, indicating “momentum from stronger-than-expected growth” in the fourth quarter due to higher domestic investment.
The growth forecast, however, is far less optimistic than the Indian central bank’s 6.5% increase prognosis.
India’s economy expanded by 6.1% in the March quarter thanks to government and private capital spending, and by 7.2% in the fiscal year that ended on March 31, 2022, one of the largest economies in the world.
Given a stronger than anticipated start to the year, the IMF also marginally increased its forecasts for global GDP this year, but the balance of risks to the outlook remained tilted to the negative.