BUSINESS

India's GDP to grow at 6.3% in FY24: IMF

By Rishabh Raj

1

IMF forecast

The IMF predicts India's economy will grow by 6.3% this fiscal year and next. However, this estimate is lower than the 7% forecast by RBI. 

2

Comprehensive reforms needed

"India has potential for even higher growth, with greater contributions from labor and human capital, if comprehensive reforms are implemented," said IMF. 

3

Inflation decline, volatility

As per IMF, the headline inflation is expected to gradually decline, although it remains volatile due to food price shocks. 

4

Ambitious fiscal consolidation

To reduce public debt, the IMF suggests that India needs "ambitious" fiscal consolidation over the medium term. This includes increasing revenue collection and spending efficiently on infrastructure. 

5

Neutral monetary policy

The IMF considers the central bank's current neutral monetary policy stance "appropriate" for bringing inflation back to the 4% target. 

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