Washington: The International Monetary Fund (IMF) on Tuesday predicted a growth rate of 7.3 per cent for India in the current financial year and 7.4 per cent in 2019. In 2017, India had recorded a 6.7 per cent growth rate.
The latest World Economic Outlook Report of IMF predicted a slightly lower growth rate than it made projections in the April 2018 World Economic Outlook for 2019.
“India’s growth is expected to increase to 7.3 per cent in 2018 and to 7.4 per cent in 2019 (slightly lower than in the April 2018 World Economic Outlook [WEO] for 2019, given the recent increase in oil prices and the tightening of global financial conditions), up from 6.7 per cent in 2017,” the IMF report said.
The report 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 liberalise foreign investment and make it easier to do business.
India’s medium-term growth prospects remain strong at 7.75 per cent, benefiting from ongoing structural reform.
If the projections are true, then India will regain the tag of the fastest growing major economies of the world, crossing China with more than 0.7 percentage point in 2018 and an impressive 1.2 percentage point growth lead in 2019.