Friday, April 16, 2021
Home Government and Policy IMF WEO report: India is the fastest growing economy in the world, 7.4% growth...

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.”

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.

  Support Us  

Whether NDTV or 'The Wire', they never have to worry about funds. In name of saving democracy, they get money from various sources. We need your support to fight them. Please contribute whatever you can afford

OpIndia Staffhttps://www.opindia.com
Staff reporter at OpIndia

Related Articles

Trending now

Shekhar Gupta’s The Print declares Instagram Reels casteist, claims dancing Savarnas marginalise Dalits through ‘modern casteism’

The Print article makes it abundantly clear that Instagram Reels are the next great enemy that must be overcome.

Derek O’Brien’s Clubhouse interaction exposes how TMC fears the prospect of loss in West Bengal: Three statements made and what they mean

Perhaps to fire-fight what Prashant Kishor said, Derek O'Brien appeared on Clubhouse for a short interaction with select 'liberals'.

Kumbh to be wrapped up by April 17: What this Niranjani Akhada Sadhu says is another reason Kumbh was nothing like Tablighi Jamaat

Ravindra Puri Maharaj of the Niranjani Akhada has stated that they have asked all Sadhus from other states to go back, keeping in view the pandemic concerns.

While Arvind Kejriwal’s ‘Corona App’ shows ample beds available for Covid-19 patients, hospitals deny

A number of tweets by users and a check by OpIndia has found that the 'real-time' data in the Delhi government's Corona App is far from reality.

Current and prospective students at Rutgers slam varsity for defending anti-Hindu historian Audrey Truschke. Here are 5 testimonials

Rutgers University had defended Audrey Truschke's vile anti-Hindu bigotry as 'academic freedom'.

James O’Keefe to sue as Twitter suspends accounts days after Project Veritas exposed CNN Technical Director making shocking claims on video

Twitter has suspended the accounts of Project Veritas and their founder James O'Keefe after they exposed CNN and their propaganda campaign

Recently Popular

Aaj Tak to air public apology on 23rd April for sharing fake news on Sushant Singh Rajput, pay Rs 1 lac fine: Details

Aaj Tak has been asked by the NBSA (News Broadcasting Standard Authority) to air a public apology for fake news on Sushant Singh Rajput

Missionaries converted over 1 lakh people amidst the pandemic, claims to have planted more churches than all the 25 years of their work in...

Missionaries claim they used the distress faced by poor people during the lockdown to convert them to Christianity and build more churches

Pakistan on the verge of civil war as it bans TLP for violent protests over the arrest of its leader and Muhammad cartoons in...

Pakistan Government has taken the decision to ban Tehreek-i-Labbaik Pakistan (TLP) for their violent protests in the country

TMC’s Mahua Moitra claims wishing Hindus on Hindu new year is ‘radicalisation’

While Moitra wanted to paint everyone who was celebrating the Hindu new year as 'radical', the hate for Hindus was actually more evident in her tweet.

CNN hoped for higher Covid-19 death toll, hyped pandemic deaths to improve ratings, technical director admits in Project Veritas leak

CNN Technical Director Charlie Chester went on five Tinder dates with a Project Veritas agent where he made the revelations.

Exclusive: How Maharashtra wasted thousands of tonnes of pulses, in the middle of the pandemic, sent under PM Garib Kalyan Yojana

While the central govt gave their approval to the other states to utilise the left-over pulses, Maharashtra was left behind - Here is why
- Advertisement -

 

Connect with us

254,077FansLike
529,424FollowersFollow
24,200SubscribersSubscribe