The International Monetary Fund (IMF) has maintained its forecast for India’s economic growth at 7.4% in 2018-19, which will again make the country the fastest-growing large economy after losing this tag to China by a close margin in 2017-18. For 2019-20, the IMF has projected India to grow at 7.8%. By comparison, the Chinese economy is expected to slow down to 6.4% in 2019, down from 6.6% in 2018.
India is likely to have grown 6.7% in 2017-18, the IMF said. In fact, the IMF projection for 2017-18 is a tad higher than 6.6%, pegged by the second Advance Estimates by the Central Statistics Office. China grew 6.9% in 2017.
Economic activity in India is likely to get a fillip from “strong private consumption as well as fading transitory effects of the currency exchange initiative and implementation of the national goods and services tax,” noted the Fund in its latest World Economic Outlook, released ahead of the IMF-World Bank SPRING meetings. Over the medium term, India’s economic growth is “expected to gradually rise with continued implementation of structural reforms that raise productivity and incentivise private investment,” it added. Read More