Tuesday, May 18, 2021

IMF Confirms India as the World’s Fastest Growing Economy

Is India the World’s Fastest Growing Economy? The International Monetary Fund (IMF) has predicted an impressive growth for the Indian Economy in the financial year 2019 and Confirmed India’s Status as World’s Fastest Growing Economy (major economies)

The apex body said that India is expected to record a growth of 7.4 percent in FY 19 as compared to the 6.7 percent in FY 18. Furthermore, the Indian economy will continue to grow to 7.8 percent in FY 20. The IMF further added that the year 2017 recorded the highest growth for the world economy in the past seven years. The announcements came on the eve of PM Narendra Modi’s address at the World Economic Forum in Davos on Tuesday.

India the World’s Fastest Growing Economy, While Chinese Economy To Slip by 0.2% YoY In FY20: IMF

The IMF had previously predicted in October last year that the world economy would grow at a rate of 3.7 percent which they have now updated to a growth of 3.9 percent. The global apex economic body said that over 120 countries of the world recorded an impressive growth in 2017. For China, the IMF said it would grow to 6.8 percent only to slip down to 6.6 percent the following year. The United States, on the other hand, is likely to grow 2.7 percent and 2.5 percent in 2018 and 2019 respectively.

The Indian economy which is likely to record a 7 percent growth in the second half of the current fiscal year, has seen an 8.4 percent rise in November in terms of industrial production. Sale of passenger vehicles, on the other hand, grew 5.2 percent to 239,712 units as compared to the previous year. Similarly, the sale of commercial vehicles rose to 82,362 units (52.6 percent) while the sale of two-wheeler increased 41.5 percent to 1.29 million units. The stock markets in the Indian economy also have been hitting impressive highs over the last few weeks.

Leaders To Remain Mindful That Growth Momentum Not Permanent: IMF Official

Impressive tax collections in the Jan-Mar quarter has also led to the government to reduce the borrowings planned before. The IMF said the growth forecast for the world economy has been increased to 3.9 percent which further indicates the impact of changes in US tax policy. The IMF DoR Maurice Obstfeld, however, said that the world political leaders must keep in mind that the momentum of present economic changes is a result of factors that may not last for a long time.

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