In its latest report, the International Monetary Fund (IMF) has revised India’s growth projections for the year 2024, predicting a rise to 6.8 percent from the previous estimate of 6.5 percent. This positions India as the leader in growth among emerging markets and developing economies.
The IMF maintained India’s growth rate at 6.5 percent for the year 2025, citing robust domestic demand and a growing working-age population as key factors driving the economy forward.
Highlighting the demographic dividend, the IMF emphasized that countries like India are poised to contribute significantly to the global workforce. Nearly two-thirds of new entrants into the workforce over the medium term are expected to come from India and sub-Saharan Africa, according to the report.
The IMF’s World Economic Outlook report underscores the consistent outperformance of economic growth in emerging markets compared to advanced economies over the past two decades. This growth has been accompanied by a notable increase in the share of world GDP contributed by emerging economies.
India’s official data reveals impressive growth figures, with an 8.4 percent expansion during the October-December quarter of the financial year 2023-24. This makes India the fastest-growing major economy, with growth rates of 7.8 percent and 7.6 percent in the preceding two quarters.
The Indian economy’s upward trajectory is evident, with growth rates of 7.2 percent in 2022-23 and 8.7 percent in 2021-22.
On a global scale, the IMF projects a growth rate of 3.2 percent for both 2024 and 2025, highlighting the resilience of the global economy despite challenges such as supply-chain disruptions, geopolitical tensions, and inflationary pressures.
Reflecting on recent events, the IMF notes that despite initial concerns, the world managed to avoid a recession, with the banking system proving largely resilient. Major emerging market economies also did not experience sudden stops in growth.
In summary, India’s growth story remains robust, with the IMF recognizing its position as the fastest-growing economy among developing nations. This positive outlook is supported by strong domestic demand and a favorable demographic dividend, contributing to India’s integral role in the global economy’s growth trajectory.
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