The International Monetary Fund (IMF) said it expects some setbacks for India's upcoming financial economy and pegged the growth rate at 6.1 percent in 2023, down from 6.8 percent in 2022. However, the world financial institution predicted that the growth rate of the Indian economy would return to 6.8 percent by 2024, according to the World Economic Outlook.
IMF chief economist and director of research department Pierre-Olivier Gourench attributed India's decline in growth rate during 2023 largely to adverse external factors.
The PTI news
agency quoted Gurinchas as saying: "Our growth forecast for India has actually not changed from our forecast for October. We have growth of 6.8 per cent in this current fiscal year, which runs until March, and then we expect a slowdown to 6.1 percent in [fiscal year] 2023. And that's largely due to external factors."
The World Economic Outlook issued by the International Monetary Fund also indicated that global growth is expected to slow from around 3.4 percent in 2022 to 2.9 percent in 2023 and then rise to 3.1 percent in 2024. Growth is likely to pick up in Asia and developing to 5.3 percent in 2023 and 5.2 percent in 2024 after declining to 4.3 percent in 2022 due to uncertain economic conditions in China.