India’s growth prospects have been revised down by the International Monetary Fund (IMF) for the fiscal year 2023-24, with GDP growth now forecast to be 5.9%. This is a 20 basis point cut from its earlier projection of 6.1%. However, India will continue to be the world’s fastest-growing economy despite the setback.

The IMF has also lowered its forecast for India’s growth for the 2024-25 fiscal year to 6.3% from the earlier projection of 6.8%. The report also expects India’s retail inflation to be at 4.9% in FY24 and 4.4% in FY25.

Despite the lowered projections, India is still ahead of China, whose growth rate is projected to be 5.2% in 2023 and 4.5% in 2024. The global economy is also predicted to grow by 2.8% this year and 3% in 2024, according to the IMF’s annual report.