The IMF predicts that India’s GDP would grow by 8% and that it will lead global growth in the near future
Washington: For the foreseeable future, India is expected to remain a major contributor to global growth, according to IMF projections. The Executive Director of the IMF, Krishnamurthy V. Subramaniam, provided information in an interview with the news agency ANI, stating that India has consistently seen growth at a rate of more than 7% since the COVID-19 epidemic.
In addition, he assessed India’s growth in the fourth quarter to be 8%, calling it “good” growth given the state of the world economy at the time.
“I think India will continue to be the driver for global growth in the foreseeable future,” he said when asked where India stood in the present global economy. the kind that contributes the most to global development. I predict that India’s growth will continuously exceed 7% for the next 10 years. You would remember that I was also employed by the government back in September of 2021. I projected that India will expand by more than 7% when it comes out of COVID-19. Thus, I’m sticking with that judgment.
The IMF has increased its growth estimate for India in 2024 to 7.8%, according to Subramaniam, the country’s former chief economic adviser. He emphasized that this figure reflected total growth.
“Well, if you look at the Indian economy now, ever since COVID, it has grown consistently at 7% plus, 9.7% the year after COVID, then 7% and then this year, 8.2 percent, 8.1 percent, and 8.4 percent growth in the first three quarters,” he said in response to a question about how the IMF meetings being held in the US view India’s economy. Therefore, even with a far lower growth rate of 7.3%, if that occurs, India would actually see an average growth rate of 8% in the fourth quarter. And given the state of the world economy right now, I believe it is excellent. 3.1% is what I indicated would be expected for the world economy.
“As a result of the overall development, the fund has now updated its growth estimate for India for this year to 7.8%. I should also point out that, in my opinion, this is a really significant point when it comes to productivity gains. To understand the determinants of growth, economists utilize data from the Penn World Table, which is really available online. Prior to 2014, India’s annual rate of productivity growth was 1.3%; however, after 2014, the rate of productivity growth has more than doubled to 2.7%. And I believe it is a key factor in keeping growth strong and sustainable in the long run,” he said.
India’s economy remained the fastest-growing major economy during the October–December quarter of the current fiscal year 2023–24, with a staggering 8.4% growth in GDP.
According to figures issued by the Ministry of Statistics and Programme Implementation in February of this year, the Indian economy expanded by 7.8% and 7.6% over the two prior quarters, which were April-June and July-September.
