The International Monetary Fund (IMF) on Tuesday cut its economic growth forecast for India to 9.5% for the fiscal year to March 31, 2022. This forecast for 2021-22 is lower than the 12.5% growth in GDP that IMF had projected in April before the second wave took a grip.
For 2022-23, IMF expects economic growth of 8.5%, larger than the 6.9% it had projected in April.
“Growth prospects in India have been downgraded following the severe second Covid wave during March-May and expected slow recovery in confidence from that setback,” IMF said in its latest World Economic Outlook (WEO).
IMF joins a host of agencies that have cut India’s growth estimates for the current fiscal. Last month, S&P Global Ratings projected a 9.5% GDP growth in the current fiscal and 7.8% in 2022-23. While World Bank sees GDP growth at 8.3% from April 2021 to March 2022, the Asian Development Bank (ADB) last week downgraded India’s economic growth forecast to 10% from 11% estimated in April.
Moody’s has projected India clocking 9.3% growth in the current fiscal ending March 2022. For 2021 calendar year, Moody’s has cut the growth estimate sharply to 9.6%.
The GDP, which shrank from $2.87 trillion in 2019-20 to $2.66 trillion in the following year, is estimated to reach around $4 trillion in 2024-25.
Overall, the global economy is projected to grow 6% in 2021 and 4.9% in 2022. The 2021 global growth forecast is unchanged from the April 2021 WEO, but with offsetting revisions, the report said.
“The global economic recovery continues, but with a widening gap between advanced economies and many emerging markets and developing economies. Our latest global growth forecast of 6 percent for 2021 is unchanged from the previous outlook, but the composition has changed,” IMF’s Chief Economist Gita Gopinath said in a blog post released along with the WEO.
(Follow Money9 for latest Personal finance stories and Market Updates)
These nudges may seem insignificant at start, but once applied may prove powerful enough to achieve the impossible
Govt must procure just as much as it needs to meet requirements of consumers entitled to rationed grains plus a buffer for contingencies like Covid-19
One of the key issues with MSPs is that they distort production decisions as many farmers grow wheat because of the assured returns on its cultivation
Small savings banks & their participation will most certainly lead to greater competition in the space — and this competition may lead to consequences