IMF WEO report: India is the fastest growing economy in the world, 7.4% growth predicted for the next fiscal

The International Monetary Fund (IMF) on Tuesday lauded Indian government for its efforts to carry out economic reforms in the country and also projected India to be the world`s fastest growing major economy in the current year and also in 2019.

According to the IMF, India will achieve a growth rate of 7.3 percent in the current fiscal year and it has predicted that India will grow at 7.4 percent in 2019-20.

IMF has released its annual World Economic Outlook (WEO) report ahead of its annual meeting in Bali said, “In India, important reforms have been implemented in recent years, including the Goods and Services Tax, the inflation-targeting framework, the Insolvency and Bankruptcy Code, and steps to liberalize foreign investment and make it easier to do business.”

- Advertisement - - Article resumes -

The international organization cited external factors of the recent increase in oil prices and the tightening of global financial conditions for its revision of India`s growth projection made in July for next year by 0.1 percent to 7.4 percent. However, it has retained the 7.3 percent growth projection for this year made in July.

IMF predicts India to be the fastest Economy in the world
Image Source: Economic Times

The WEO report suggested the rise in the growth rates reflected a rebound from transitory shocks of demonetization and implementation of the GST accompanied by strengthening investment and robust private consumption. The IMF in its report is of the view that India’s growth rate will improve post-2019 due to structural reforms initiated by the present government and favorable demographic dividend.

“India`s medium-term growth prospects remain strong at 7.75 percent, benefiting from ongoing structural reform,” it added.

This year’s China will growth rate stays at 6.6 percent, which is 0.7 percent less compared to India and it will be staggering 1.2 percent less than India in the next year, said IMF. The IMF has also cut the world growth projection made in July for this year and the next by 0.2 percent to 3.7 percent.

IMF Chief Economist Maurice Obstfeld has warned that “there are clouds on the horizon” and “the likelihood of further negative shocks to our growth forecast has risen. In several key economies, moreover, growth is being supported by policies that seem unsustainable over the long term,” he said.

He further indicated the uncertainties in the trade as a result of US President Donald Trump`s policies and the tightening of financial markets in developing countries among factors increasing the risks to global growth,

The IMF has recommended India to reforms to revive bank credit and enhancing the efficiency of the banks by solving NPA crisis and advised to improve corporate balance sheets and the governance of public sector banks.

It has also added, “A high-interest burden and risks from rising yields also require continued focus on debt reduction to establish policy credibility and build buffers. These efforts should be supported by further reductions in subsidies and enhanced compliance with the Goods and Services Tax.”

Earlier this year, the World Bank had also predicted a growth of 7.3% for the 2018-19 fiscal for India.


Share and Support:
Support OpIndia by paying for content

Most read articles recently

Fact-Check: N Ram is lying in his The Hindu article about the Rafale Deal, here’s how

The Hindu article gets its facts wrong and makes a blunder in analysing them

Freudian slip: Embarrassment for ‘united opposition’ at Kolkata rally as Sharad Yadav talks about the Bofors loot

At the United India opposition rally in Kolkata, Sharad Yadav said that Bofors was daylight robbery and that while our soldiers laid their lives down at the border, the ruling dispensation had robbed and stole in the Bofors case
Leaders like Jignesh Mevani must clarify if they agree with Arun Shourie's views on Ambedkar

Here are Arun Shourie’s views on Ambedkar, does Jignesh Mevani support them?

Arun Shourie was one of the attendees at the United India rally organized by the Trinamool Congress at Kolkata. The event was also attended by Jignes Mevani, a Dalit 'leader'.

Fact-check: Was the photo shared by Vinod Kapri that of Nehru after taking holy dip in Kumbh 1954

While a Congress leader in his book says photo shows Nehru immersing ashes of his father, few media houses say it was ashes of Nehru's mother
Short story: How a Modi supporters turned into a Modi hater overnight

How Mr X turned from being a die-hard Modi fan to a thorough Modi hater overnight

Every time PM Modi and his party would do something Mr X would oppose it but will pretend as if he supported the last action.

N Ram of The Hindu blatantly picks up the work of another journalist on Rafale to brand it an “exclusive”

N Ram of The Hindu has not only stolen another journalist's work on Rafale and called it his own, but he has also skewed his work to give it a narrative spin that suits him

Voter registration: A step-by-step guide to register online on the voter list

A comprehensive guide for the first time voters to register themselves on the portal and ensure their participation in the world's largest democracy

Congress expels former minister Srikant Jena and former MLA Sagaria for ‘anti party activities’

While Jena was a former Union Minister in the previous UPA government, the Dalit leader, Sagaria represented Koraput in the state assembly

Opposition rally in Kolkata: Crowd nowhere near the 50 lakh mark as projected, many left mid-way

Mamata had to intervene and ask the crowd not to leave before the speeches of all leaders are over.

Hail Mary pass: The stained ghosts of Niira Radia resurrected by the Congress ecosystem

The Radia tapes scandal brought to the fore the shenanigans employed by political parties and their ‘pliable’ journalists

Latest articles

Connect with us

128,380FansLike
104,507FollowersFollow
9,003SubscribersSubscribe

Don't miss these