Reuters

India`s economy is likely to grow at 6.5% in the financial year starting Apr 1, 2024, and at a similar pace the year after, the International Monetary Fund said in its World Economic Outlook released on Tuesday.

The IMF also revised its projections for GDP growth in the world`s fifth-largest economy during the current financial year to 6.7% from 6.3% in October.

The strong growth projection for India came even as the report projected that growth in the wider region of "developing Asia" will decline to 5.2% in 2024 and 4.8% in 2025 from an estimated 5.4% in 2023.

"Growth in India is projected to remain strong at 6.5% in both 2024 and 2025, with an upgrade from October of 0.2 percentage point for both years, reflecting resilience in domestic demand," the IMF report said.

The IMF`s projection of 6.5% is lower than the Indian federal government`s expectation of 7% growth in the economy in the next fiscal year, as stated in its latest economic review released on Monday.

The growth estimates come days before Prime Minister Narendra Modi`s government presents its last budget prior to parliamentary elections, in which he will seek a third term.