As a result of the increased economic uncertainty throughout the world, the International Monetary Fund (IMF) reduced India's GDP growth prediction to 5.9% for 2023–2024 and 6.3% for 2024–25.
In January, the IMF in its World Economic Outlook (WEO) update had said that India remained a bright spot and together with China would account for half of global growth this year, versus just a tenth for the US and euro area combined. It had retained India’s GDP growth projections at 6. 1% for 2023-24 and 6. 8% for 2024-25.
According to the WEO, global growth will reach its lowest point this year at 2.8% before edging up slightly to 3% next year, or 0.1% less than anticipated in January. The rate of global inflation will decline from 8.7% last year to 7% this year and 4.9% in 2024, but more slowly than previously predicted.
This is the first projection below 6% and the lowest growth estimate among the multilateral agencies. Both the World Bank and the Asian Development Bank have pegged the GDP growth for the current fiscal year at 6.3% and 6.4%, respectively. The RBI slightly increased its GDP growth prediction from 6.4% to 6.5% in its most recent monetary policy statement.