The Indian economy is expected to contract from 6.8% in 2022 to 6.1 in 2023, according to the International Monetary Fund’s (IMF) most recent predictions for global economic growth. However, India is predicted to develop at a 6.8% rate in the fiscal year 2024.
From 3.4 percent in the current fiscal year till March, it is predicted that the global economy will contract to 2.9% in the following fiscal year. 3.1% growth was expected for FY 2024.
With current forecasts exceeding growth in emerging and developing Asia as well as projections for China’s GDP, India’s economy continues to grow at the highest rate in the world. With the Covid-19 limits being loosened, growth in China is anticipated to rise to 5.2% in 2023 before declining to 4.5% in 2024.
In 2023, China and India combined will account for over half of global growth. With a jump to 5.3% from 4.3%, emerging and developing Asia is experiencing an optimistic outlook.
Emerging market and developing economies are likely to experience a slight increase in growth from 3.9% in 2022 to 4% in 2023, whereas advanced economies are predicted to experience a sharp decrease from 2.7% to 1.2% and 1.4% this year and next. In the upcoming fiscal year, growth in the US will slow to 1.4% due to rising interest rates. In 2023, the euro area’s anticipated growth rate will plummet from 3.5% in the current fiscal year to 0.7% due to the Ukraine war, the energy crisis, and tightening monetary policy.