India's economic resilience: IMF predicts Indian economy will grow by nearly 6 per cent this fiscal year

In its flagship World Economic Outlook report, the International Monetary Fund (IMF) projected that India would be the fastest-growing economy in the world, despite confronting considerable challenges such as financial sector turmoil, inflationary pressures, effects of the Russia-Ukraine war, and the persistent impact of the Covid-19 pandemic over the past three years.

On April 11, The International Monetary Fund (IMF) released its latest World Economic Outlook report, projecting that the Indian economy will grow by 5.9 per cent in the current fiscal year, making it the fastest-growing economy in the world. Nonetheless, the organization also warned that disruption in the financial system could have a detrimental effect on overall global growth.IMF revised its 2023 global growth projections in response to cooling economic activity due to higher interest rates but warned that a sharp rise in financial system turmoil might push output to near recessionary levels.

Projections for global economic growth in 2023 were reduced to 2.8 per cent. It was 0.1 percentage point less from the last IMF update in January and a 0.6 percentage point decrease from global economic growth in 2022. The IMF forecast global real GDP growth at 2.8 per cent for 2023 and 3 per cent for 2024 in its latest World Economic Outlook report. It marks a distinct slowdown from 3.4 per cent growth in 2022.Despite facing formidable challenges, India stands tall and steadfast, emerging as a beacon of resilience in the global economy. She has emerged relatively unscathed, although the report lowered India`s growth projection to 5.9 per cent.

The last World Economic Outlook report had placed it at 6.1 per cent. The IMF`s bi-annual report observed that India`s headline retail inflation is expected to ease up, from 6.7 per cent in the previous year to 4.9 per cent in 2023-24. This is a clear indication of India`s economic prowess and its unwavering determination to overcome even the toughest of obstacles.IMF Managing Director Kristalina Georgieva has praised India`s efforts in leveraging digitalization to overcome the challenges posed by the Covid-19 pandemic, which has not only helped the country weather the storm but also created new opportunities for growth and employment.

In an interview with the Indian news agency PTI, Georgieva declared India as a "bright spot" in the world economy, with the country expected to contribute a significant 15 per cent of the global growth in 2023.Additionally, Georgieva lauded the recent Union budget for its balance between addressing development needs and maintaining fiscal responsibility with enhanced capital expenditure that provides a strong foundation for long-term growth and ensures sustainable development for India.

The IMF eagerly anticipates India`s continued success, with its growth projections serving as a testament to the country`s unwavering strength and resilience. Georgieva`s words serve as a powerful endorsement of India`s innovative approach and solid commitment to progress, demonstrating the country`s economic dexterity[Ma1] and capability to overcome even the toughest of challenges. Top of form She lauded the latest Union budget for the balance between meeting the country`s development needs and being fiscally responsible. The budget has increased capital expenditure on important infrastructure projects, which will create a strong foundation for long-term growth and help India achieve sustainable development.

Also Read: Tech Mahindra Q4 review: Here's what top domestic brokerages have to say

Also Read: Tata Metaliks announces dividend of Rs 5 per share - Check record date, payment date, other key details