K. V. V. V. Charya: The International Monetary Fund (IMF) did not make any changes in its growth rate projections about India for the financial year 2025. In its recent World Economic Outlook (WEO), the multilateral lending agency maintained the growth rate of India at 7 per cent for the current fiscal ending March, 2025, however, its projection for the next fiscal that is Financial Year 2025-26, estimated at 6.5 per cent.
The agency pointed out that the country is ‘restricted demand’ which was accumulated during the Pandemic is now almost exhausted and the economy is identifying its full potential, the report maintained.
It further said that the inflation, globally, is showing receding trend, even though the price pressures are still dominant in some of the countries. “The global battle against inflation has largely been won.” The inflation which had touched 9.4 per cent in the third quarter of 2022 is estimated to be at 3.5 per cent by end of 2025.
However, it is not ruled out the potential geopolitical risk following escalation of regional conflicts, according to Pierre-Olivier Gourinchas. With the continuing of Russia-Ukraine war, conflict in West Asia and Lebanon, may impact the projections.
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