IMF projects 11.5 pc GDP growth for India

WITH International Monetary Fund (IMF) projecting that India will reclaim the status of world’s fastest-growing economy and projected its growth at 11.5 per cent in 2021, experts on Wednesday said that India is rebounding to achieve the target of a USD 5 trillion economy.

 

In its latest World Economic Outlook update released on Tuesday, the IMF predicted that India’s gross domestic product (GDP) will grow at the pace of 11.5 per cent in 2021.

 

IMF projections show that India’s economy will grow much better than China which is predicted to grow at 8.1 per cent, followed by Spain (5.9 per cent), France (5.5 per cent) and United States (5.1 per cent).

 

Commerce and Industry Minister Piyush Goyal termed the IMF projections for India as “Bright star in the global economy.” “Bright Star in Global Economy: India to continue its growth story at rapid pace under PM @NarendraModi ji, with @IMFNews projecting an impressive 11.5% growth rate for India in 2021. It makes India only major economy to register double-digit growth in 2021,” Goyal tweeted.

 

Charan Singh, CEO, EGROW Foundation and former RBI Chair Professor said, “As was expected, and I had been arguing that India’s fundamentals are strong, IMF, in its latest release has projected India’s growth at 11.5 per cent in 2021 and 6.8 per cent in 2022. This is the highest growth rate to be recorded by any country.”

 

DK Mishra, a market expert, said, the pandemic has impacted worldwide economies in a big way but Indian economy has come out of initial hits due to measures taken by Government and strong consumer demands.

INDIA’S recently-enacted agri laws have the potential to increase farmers’ income, but there is a need to provide a

social safety net to vulnerable cultivators, Chief Economist of IMF Gita Gopinath has said.

Indian agriculture is in need of reforms, she said.

There are multiple areas where the reforms are needed, including infrastructure, the Chief Economist of the Washington-based global financial institution said on Tuesday.

 

The three agri laws, enacted in September last year, have been projected by the Indian Government as major reforms in the agriculture sector that will remove middlemen and allow farmers to sell their produce anywhere in the country.

Gopinath, in response to a question on the new farm laws, said: “These particular farm laws were in the area of marketing. It was widening the market for farmers. Being able to sell to multiple outlets besides the Mandis without having to pay a tax. And this had the potential to raise, in our view, farmers’ incomes”.

 

“That said, every time a reform is put in place, there are transition costs. One has to make sure and pay close attention that it’s not harming vulnerable farmers, to make sure that the social safety net is provided. Clearly there is a discussion right now and we’ll see what comes out if it,” she said.