The International Monetary Fund (IMF) anticipates a 6.3% growth in India's economy for the current fiscal year.

The International Monetary Fund (IMF) has adjusted its economic growth projection for India in the current fiscal year, raising it from 6.1% to 6.3%, as per the October 2023 World Economic Outlook report released on Tuesday. According to the report, India's robust growth is expected to persist at 6.3% in both 2023 and 2024, with a 0.2 percentage point upward revision for 2023, attributed to stronger-than-anticipated consumption during April-June.

Contrary to the IMF's optimism, the Reserve Bank of India has a slightly lower GDP growth projection of 6.5%. The IMF also foresees a rise in consumer price inflation in India, reaching 5.5% in 2023/24 before gradually decreasing to 4.6% in 2024/25. Additionally, the organization predicts that the nation's current account deficit will remain steady at 1.8% of GDP in both fiscal years 2024 and 2025.

The IMF's World Economic Outlook maintains the previous estimate for global real GDP growth in 2023 at 3.0%. However, there is a slight adjustment in the 2024 forecast, with a reduction of 0.1 percentage point to 2.9% compared to the July prediction. The report acknowledges the ongoing global economic recovery from the pandemic, the Russia-Ukraine conflict, and the challenges posed by high inflation and geopolitical tensions.

Despite disruptions in energy and food markets due to the war and the significant tightening of global monetary conditions to combat inflation, the global economy is described as slowing down but not stalling. The report emphasizes the persistent challenges and uneven recovery, noting that the global economy is progressing slowly with noticeable divergences. It concludes that the global economy is not in a robust sprint but rather limping along, reflecting the complexities arising from various geopolitical and economic factors.