Dr. Gita Gopinath, First Deputy Managing Director of the International Monetary Fund (IMF), has noted that India’s economic performance has exceeded expectations. She highlighted that the IMF anticipates a recovery in private consumption and a favorable monsoon to boost agricultural output. Gopinath projected that India is set to become the world’s third-largest economy by 2027.
In an interview with India Today News Director Rahul Kanwal, Gopinath attributed India’s strong growth to several factors. “India’s growth exceeded our expectations last fiscal year, and this momentum is influencing our forecasts for the current year. Additionally, we are seeing a recovery in private consumption,” she stated.
Gopinath praised the revival of consumption, particularly in rural areas, as a positive sign for economic growth. Reflecting this optimism, the IMF has raised its growth projection for India for the 2024-25 fiscal year to 7 percent, aligning closely with the Reserve Bank of India’s recent forecast of 7.2 percent. The RBI’s August Monetary Policy Committee projections include a growth rate of 7.1 percent for Q1, 7.2 percent for Q2, 7.3 percent for Q3, and 7.2 percent for Q4.
This new IMF projection surpasses the 6.5-7 percent growth range predicted in the Economic Survey 2024, which was released just before the Union Budget 2024. Gopinath explained that improved private consumption, evidenced by rising sales in sectors like FMCG and two-wheelers, and the benefits of a better monsoon leading to higher agricultural incomes, have contributed to the IMF’s upgraded growth forecast.
