The International Monetary Fund (IMF) downgraded India’s growth forecast for FY24 to 5.9 percent, a 20-basis point decrease from its January forecast of 6.1 percent. This is significantly lower than the Reserve Bank of India’s most recent forecast of 6.5 percent growth in the current fiscal year. The growth forecast for FY25 has also been reduced to 6.3%, down 50 basis points from the previous estimate of 6.8%. Despite the downward revisions, India remains the world’s fastest-growing economy, according to the World Economic Outlook figures. Concerning the global economy, the IMF reduced growth forecasts, citing risks from rising interest rates and uncertainties caused by the failure of two US regional banks and the forced merger of Credit Suisse. The IMF now expects global growth to be 2.8 percent this year, down from 3.4 percent in 2022 and 2.9 percent in its previous forecast in January. The 190-country lending organization, on the other hand, expects global inflation to fall, albeit more slowly than previously anticipated, from 8.7 percent in 2022 to 7% this year and 4.9% in 2024. Earlier this month, the World Bank reduced India’s FY24 growth forecast to 6.3 percent from 6.6 percent previously, while the Asian Development Bank reduced its forecast for India to 6.4 percent from 7.2 percent.
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