The International Monetary Fund on July 16 raised India’s growth forecast for 2024-25 to 7% from 6.8% on the back of improving private consumption, particularly in rural India. The IMF left unchanged its estimate for a 6.5% growth in Asia’s third largest economy’s gross domestic product in the 2025-26 financial year, it said in the World Economic Outlook.
Improved consumption prospects, particularly in rural areas, are expected to support the country’s growth trajectory.
For the next financial year, the IMF retained the projection at a slower growth rate of 6.5 per cent.
US economy cooling
Growth in major advanced economies is becoming more aligned as output gaps close. “The United States shows increasing signs of cooling, especially in the labour market, after a strong 2023. The euro area, meanwhile, is poised to pick up after a nearly flat performance last year,” he stated.
“The forecast for growth in emerging markets and developing economies has been revised upward; this increase is powered by stronger activity in Asia, particularly China and India. The forecast for growth in India has also been revised upward to 7 per cent this year, reflecting carryover from upward revisions to growth in 2023 and improved prospects for private consumption, particularly in rural areas,” the IMF noted.
Outlook for Japan lowered to 0.7 per cent from the 0.9 per cent. Overall, global growth is projected to align with the April 2024 World Economic Outlook forecast, at 3.2 per cent in 2024 and 3.3 per cent in 2025.
Elara Chairman Raj Bhatt calls on UP CM
Elara Capital Group Chairman & CEO Raj Bhatt called on Uttar Pradesh Chief Minister Yogi Adityanath, in Lucknow recently. Founder of the global investment bank, Bhatt has been executing some the industry’s most innovative financial transactions for over three decades. He has handled some complex transactions across seven different locations across three continents.
