NEW DELHI: The International Monetary Fund has forecast that India's GDP is likely to grow to moderate from 8.2% in 2023 to 7% in 2024 and 6.5% in 2025. It said that this was because the pent-up demand built up during Covid had been depleted as the economy is resuming its potential.
"In India, the outlook is for GDP growth to moderate from 8.2% in 2023 to 7% in 2024 and 6.5% in 2025, because pent-up demand accumulated during the pandemic has been exhausted, as the economy reconnects with its potential," the IMF said in the World Economic Outlook on Tuesday.
Following a peak of 9.4% year over year in the third quarter of 2022, headline inflation is projected to decline to 3.5% by the end of 2025, which is below the average of 3.6% from 2000 to 2019.
The annual World Economic Outlook released here also forecasts global economic growth to remain steady at 3.2% for both 2024 and 2025, despite significant downward revisions in growth for some low-income developing countries.
Meanwhile, finance minister Nirmala Sitharaman expressed optimism in the growth of Indian economy.
"India's contribution to global growth is projected to see an increase of 200 basis points in the next five years," she said adding that the economy was set to become the third largest by 2027.
"The coming decades will be defined by how effectively India manages its demographic dividend, strengthens its global partnerships, and navigates the complexity of a rapidly changing world. While there are challenges ahead, there are also abundant opportunities for India to lead the way, not just in economic terms, but in shaping the global discourse on technology, sustainability, and inclusive growth," she said.
Ready to Master Stock Valuation? ET’s Workshop is just around the corner!
The TOI Business Desk is a vigilant and dedicated team of journal...
Read MoreThe TOI Business Desk is a vigilant and dedicated team of journalists committed to delivering the latest and most relevant business news from around the world to readers of The Times of India. The primary focus of the TOI Business Desk is to keep a watchful eye on the global business landscape, covering a wide spectrum of industries, markets, economic trends, in-depth analysis, exclusive reports and breaking stories that impact businesses and economies. With a mission to provide valuable insights and updates, the desk ensures that TOI readers are well-informed about the ever-changing and dynamic world of commerce and can navigate the complexities of the business world.
Read Less