The International Monetary Fund forecast for India suggests a cut in the estimated GDP of 8.2 from the earlier estimate of 9% for the Financial Year 2024.
The IMF forecast for India suggests a slight cut in the estimated growth of the economy in the financial year 2022–23. According to the recently published data, India’s GDP is expected to grow by 8.2% instead of 9%. Earlier, the International Monetary Fund estimated a growth rate of 9% in FY23 for India.
However, due to the Russia-Ukraine war, the worldwide economies are affected. The prices and supply chains of basic goods have been thrown off. This has had a global effect.
On the other hand, the IMF’s forecast for India is still higher than the RBI’s forecast of 7.2%. Taking the current war conditions into consideration, the RBI also declined the estimated GDP growth rate from 7.8%. Further, the Finance Ministry earlier expected a growth rate of 8 to 8.5% GDP.
Factors affecting the IMF forecast for India for FY23
Certainly, the Russia-Ukraine war has affected the economies globally. Most developed and developing countries expect a decrease in their estimated GDP growth rate. The World Economic Outlook (WEO) states that the expected positions are sure to deteriorate, especially for net oil importers. “Notable downgrades to the year 2022 forecast include Japan (0.9% decrease) and India (0.8% decrease), reflecting a slightly weaker demand for oil products. Higher oil prices are expected to weigh down on private consumption and investment and be a drag on lower net exports”, says WEO.
However, India still holds onto its tag as the fastest growing major global economy. On the other hand, the war has had serious ramifications for Russia. The IMF forecast for FY22 suggests a further major decline of 8.5% for the Russian GDP growth rate. Certainly, the sanctions are affecting the Russian economy at a great pace.
Published by: Diwakar Kumar
Edited by:Â Aaradhana Singh
