IMF, World Bank and Asian Development Bank-all three have revised upwards India's GDP growth for 2024 & 2025

 That's good news for the Indian economy. The World Bank and IMF have both recently increased their projections for India's GDP growth in fiscal years 2024 and 2025.

• The IMF expects India's economy to grow at 7.8% in FY24, which is higher than the government's estimate of 7.6%. IMF raises India's FY25 growth forecast to 6.8%; FY26 outlook unchanged: IMF noted that the growth surprised on the upside in the second half of 2023 as robust domestic demand fuelled activity, especially in emerging Asian economies. 
  and most notably India, recorded sizable positive growth surprises. In India, we expect investment to contribute disproportionately to growth, much of it public investment
• The World Bank projects a growth of 6.8% for both FY24 and FY25, attributing this to strong private consumption and public investment. 

• Recently India's GDP growth forecast has been revised upwards by the Asian Development Bank (ADB).

  Here's a quick summary of the key points:

  • The ADB upgraded India's GDP growth forecast for the current fiscal year (FY 2024-25) from 6.7% to 7%.
  • This revision is driven by factors like strong public and private sector investments, along with a gradual improvement in consumer demand.
  

Courtesy:The Print

In FY24, exports of goods came down by 3.2% yoy. Ready made garments, Gem & jewellery and Petroleum products were down but under Imports Oil imports were also down.So, the overall Trade deficit as a percentage of GDP is well contained below 2% of GDP.

Courtesy:CRISIL

The recently announced HSBC Flash India Composite Purchasing Managers Indices (PMI) indicate upbeat momentum in Indian economy. At 62.2 in April, the Flash India Composite PMI output index rose at the fastest pace in nearly 14 years.This clearly indicates that the Economy is growing at a robust pace and is emerging as a strong economy.

The most important outcome expected out of these GDP growth upward revisions and fiscal rectitude shown by GOI in containing the Fiscal deficit to 5.1% for FY25 , is Ratings upgrade by Global Rating agencies.