India's growing economy set to outpace China temporarily: IMF

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India's growing economy set to outpace China temporarily: IMF

India's growing economy set to outpace China temporarily: IMF

Industry News
Oct 23,23

According to Krishna Srinivasan, Director of the Asia and Pacific Department at the IMF, India is projected to account for 18% of global growth by 2028, up from the current 16%.

India's growing economy set to outpace China temporarily: IMF

The International Monetary Fund anticipates India's growing economy to significantly boost its contribution to global growth in the next five years. According to Krishna Srinivasan, Director of the Asia and Pacific Department at the IMF, India is projected to account for 18% of global growth by 2028, up from the current 16%. This growth trajectory is expected to outpace China's slowdown temporarily, emphasising India's substantial role in the global economy.

Despite India's accelerating growth, China continues to maintain economic dominance, with the IMF estimating China's nominal gross domestic product to reach $23.61 trillion by 2028, significantly surpassing India's projected $5.94 trillion. In both 2023 and 2024, China and India together are slated to contribute approximately half of the world's economic growth, as per IMF data.

However, a recent report by HSBC economists Frederic Neumann and Justin Feng suggests that India still lags behind China in terms of its global economic impact, considering the size of their economies and their share of global investment and consumption.

The IMF forecasts a 6.3% expansion in India's economy for this year and the next. The Asia Pacific region is expected to remain the most dynamic, with a growth rate of 4.6% this year, although it is anticipated to slow to 4.2% in 2024 and further to 3.9% in the medium term—a rate not seen since 2020, except for that year.

Source: Business Standard