India’s growth rate will decline from 6.8 percent in 2022 to 6.1 percent in 2023.

The International Monetary Fund (IMF) expects the Indian economy to slow slightly next fiscal year, with growth expected to rise to 6.1 percent from 6.8 percent for the current fiscal year ending March 31.

Growth in India is set to decline from 6.8 percent in 2022 to 6.1 percent in 2023 before picking up to 6.8 percent in 2024, with resilient domestic demand despite external headwinds,” said the IMF’s World Economic Outlook update.

Our growth projections actually for India are unchanged from our October Outlook. We have 6.8 percent growth for this current fiscal year, which runs until March, and then we’re expecting some slowdown to 6.1 percent in the fiscal year 2023. And that is largely driven by external factors,” Pierre-Olivier Gourinchas, Chief Economist and Director, of the Research Department of the IMF told reporters in Washington.

The IMF released its January update of its World Economic Outlook on Tuesday, which is projected to decline from 3.4% in 2022 to 2.9% in 2023 and then increase to 3.1% in 2024. In the World Economic Outlook update released by the IMF on Tuesday, around 84% of countries expect headline inflation (the consumer price index) to be lower in 2023 than in 2022.

Global inflation will decline from 8.8% (annual average) in 2022 to 6.6% in 2023 and 4.3% in 2024, exceeding pre-pandemic (2017-2019) levels by about 3.5%, the report said.