IMF sees India’s economy grow at 6.3% in current fiscal year

INDIA’S economy is projected to grow at 6.3 per cent in the current fiscal year and the next, the International Monetary Fund (IMF) said late Monday (Dec 18), supported by macroeconomic and financial stability.

The country’s digital public infrastructure and a strong government infrastructure programme will continue to sustain growth, the IMF said in its Article IV consultation report, which reviews a country’s current and medium-term economic outlook.

“India has potential for even higher growth, with greater contributions from labour and human capital, if comprehensive reforms are implemented,” the IMF said.

The IMF’s growth projection for the current financial year, ending Mar 31, 2024, is lower than the 7 per cent forecast by the Reserve Bank of India (RBI).

“Headline inflation is expected to gradually decline to the target although it remains volatile due to food price shocks,” the IMF said.

Volatile food prices pushed up retail inflation to 5.6 per cent in November from 4.9 per cent the previous month. While this was within the RBI’s tolerance band of 2 to 6 per cent, it remains above the target of 4 per cent. REUTERS