IMF EXPECTS INDIA TO REV UP GLOBAL GROWTH AS CHINA FALTERS

Multilateral institutions such as the IMF and UNCTAD view India as a potential driver of global economic growth going ahead, as the country has become the fastestgrowing emerging economy while China's GDP growth has been pegged at 4.6 per cent in 2024 and expected to slow down further to 4.1 per cent in 2025.

The IMF's World Economic Outlook report, released on Tuesday, has not only raised India's growth forecast by 0.3 percentage points to 6.8 per cent for 2024-25 but also sees the country as a bright spot "supporting global growth over the medium term and spill over to other countries".

With China having fallen behind after the crash in its real estate sector and US sanctions triggering an economic slowdown, the IMF report views India and other G20 large emerging market countries such as Brazil playing a bigger role in the global trading system and pushing global growth going ahead.

The IMF report also vindicates India's economic policy as it attributes the robust growth rate to a "strong domestic demand", which has been created by a huge increase in government expenditure on large infrastructure projects such as highways, railways, ports and power plants along with a revival in rural demand.

Stepped-up allocations for agriculture, rural employment schemes such as MNREGA and special programmes for women self-help groups have helped to bolster rural demand and create a larger market for industrial products. During the 10-year tenure of Prime Minister Narendra Modi's government, over 90,000 kilometres of national highways have been built which is almost twice that constructed in the preceding 10 years, according to official figures.

IMF has not only raised India's growth forecast by 0.3 percentage points to 6.8% for 2024-25 but also sees the country as a bright spot