India's Economic Growth Slows as Industrial Activity Declines, IMF Reports

The International Monetary Fund reports a slower-than-expected economic growth in India due to a sharp deceleration in industrial activity. India's growth decreased from 8.2% in 2023 to 6.5% in 2024 and is projected to remain stable through 2026, amidst a global economic landscape holding steady but lackluster.

The International Monetary Fund (IMF) has revised its projections for India's economic growth amid a sharper-than-anticipated slowdown in industrial activity. The growth, previously at 8.2% in 2023, is now expected to remain at 6.5% through 2026.

The latest update from the IMF's World Economic Outlook indicates a steady but modest global economic climate. In contrast, the undercurrent in the US is resilient, with wealth effects and more favorable financial conditions keeping demand strong. Meanwhile, China's growth is slightly up, revised to 4.5% for next year.

Globally, the headline inflation is poised to decrease, aiding in wrapping up the upheaval caused by recent disruptions. The report emphasizes the solid growth projection for India over the next two years, aligning with its potential despite the global challenges.

(With inputs from agencies.)