The International Monetary Fund (IMF) has predicted that India’s economy will maintain a delicate growth in years to come. According to the IMF prediction, Indian economy will remain somewhere near 7.3 in 2019, while it will grow up to 7.5 in 2020. In 2018, India’s GDP was at 7.1.
India’s neighbour China however is projected for a cut in economic growth over the next year. According to IMF, Chinese economy will remain at 6.3 in 2019, and it will further fall down to 6.1 in 2020. China’s GDP was at 6.6 in 2018.
“In India, growth is projected to pick up to 7.3% in 2019 and 7.5% in 2020, supported by the continued recovery of investment and robust consumption, amid a more expansionary stance of monetary policy and some expected impetus from fiscal policy,” the IMF said in its latest World Economic Outlook (WEO).
The Reserve Bank of India had earlier lowered the GDP growth estimate to 7.2% but most economists agree that growth is poised for a rebound in the years ahead.
Responding to a question on India’s economic development in the last five years at a fortnightly news conference here, IMF communications director Gerry Rice Thursday said, “India has of course been one of the world’s fastest growing large economies of late, with growth averaging about seven per cent over the past five years.”
“Important reforms have been implemented and we feel more reforms are needed to sustain this high growth, including to harness the demographic dividend opportunity, which India has,” he said.
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Details about the Indian economy would be revealed in the upcoming World Economic Outlook (WEO) survey report to be released by the IMF ahead of the annual spring meeting with the World Bank next month, he said.
This report would be the first under Indian American economist Gita Gopinath, who is now IMF’s chief economist.
“The WEO will go into more details. But amongst the policy priorities, we would include accelerate the cleanup of banks and corporate balance sheets, continue fiscal consolidation, both at centre and state levels, and broadly maintain the reform momentum in terms of structural reforms in factor markets, labour, land reforms and further enhancing the business climate to achieve faster and more inclusive growth,” Rice said.