The International Monetary Fund (IMF) has kept India’s growth projection unchanged at 7.3 per cent in the current fiscal and 7.5 per cent in the next year in its World Economic Outlook (WEO) update. The update released expects Indian economy to be the fastest among major economies. The IMF has pegged the current year’s growth at 7.3%, same as last year. The global economy is now forecast to grow 3.4% in 2016 and 3.6% in 2017, a reduction in 0.2 percentage point for both the years from the October forecast.
IMF said the pick-up in global activity is projected to be more gradual than in the October WEO, especially in emerging market and developing economies.
In the last WEO update released in October, IMF had projected India to grow at 7.3 per cent in the current fiscal and 7.5 per cent in 2016-17. As for world growth, it had put the figures at 3.6 per cent for 2016 and 3.8 per cent for 2017. Emerging market and developing economies account for over 70 per cent of the global growth.
The IMF has called for demand support and structural reforms to contain the risks. For advanced economies, where inflation is still below the target rate, it suggests accommodative monetary policy continues. Fiscal stimulus programmes should be provided as needed and fiscal consolidation, where required, should be growth friendly and equitable.
