According to the IMF, India is navigating a “very difficult” external environment, with growth rates of 6.8 percent and 6.1 percent projected for the current and following fiscal years, respectively. Choueiri Nada, IMF’s India Mission Chief, emphasised in a virtual interaction with media that India remains the lone bright spot in an otherwise grim picture of the global economy.
According to the International Monetary Fund, India is navigating a “very difficult” external environment, with growth rates of 6.8 percent and 6.1 percent projected for the current and following fiscal years, respectively. Choueiri Nada, IMF’s India Mission Chief, emphasised in a virtual interaction with media that India remains the lone bright spot in an otherwise grim picture of the global economy.
“We are seeing the economy continue to develop rather robustly this fiscal year,” Nada said as the International Monetary Fund issued its annual consultations report with India.
According to the analysis, growth would decrease as a result of the less positive view and the tighter financial climate. According to the IMF’s assessment on India, real GDP is estimated to expand 6.8 percent in FY2022/23 and 6.9 percent in FY2023/24.
These estimates are substantially better than those made previously, according to Nada. “In fact, according to our predictions, India contributes half a percentage point to global GDP this year and next,” she added.
But, of course, there are significant concerns, and having asked about them, we notice that the risks are primarily on the negative and are caused by external causes. “Perhaps the most significant danger is a faster-than-expected global slowdown,” she added.
India’s medium-term development potential might be increased by either the efficient implementation of significant reforms or higher-than-expected gains from outstanding advances in digitalisation.
The IMF forecasts 6.8 percent GDP growth in India next year.
