Booster ahead of Budget 2022; IMF projects India to grow at 9 per cent, continue as stable economy
The World Economic Outlook predicted that the Indian economy would grow at 9 per cent in 2022 but could dip to 7.2 per cent in 2023.
The Narendra Modi government received a shot in the arm ahead of the Union Budget presentation after the World Economic Outlook released by the International Monetary Fund showed that India is projected to maintain its position as the fastest-growing major economy.
The World Economic Outlook predicted that the Indian economy would grow at 9 per cent in 2022 but could dip to 7.2 per cent in 2023. The Washington-headquartered global financial institution estimated that the global economy will dip 4.4 per cent in 2022 from 5.9 per cent a year before.
Among all economies, the Indian economy has been projected as a stable economy. While several economies are expected to dip next year, the Indian economy is forecasted to grow at the same pace.
The IMF pointed out that India had picked up its pace after struggling to contain the spread of the Delta variant of Coronavirus last year. The IMF, in its October assessment, pegged the country's economic growth at 8.5 per cent in 2022-23; and 7.1 per cent in 2023-24.
As per the IMF’s World Economic Outlook, India's prospects for the next year are marked upon expected improvements to credit growth -- and subsequently investment and consumption -- building on the better-than-anticipated performance of the financial sector.
The IMF has projected that China would see a slump of 4.8 per cent in 2022-23. However, its economy would accelerate to 5.2 per cent in 2023-24. The IMF also cut the United States growth forecast by 1.2 per cent in 2022 from 5.2 per cent in the October WEO to 4 per cent.
The decline in projections for global growth is largely attributed to economic prospects in the United States and China. Recent policy changes in the United States like the removal of the Build Back Better policy was the reason for the IMF to downgrade the growth in the global economy.
The ongoing retrenchment of China’s real estate sector and slower-than-expected recovery of private consumption have also had limited growth prospects, the report noted.
India and Japan are the only major economies to have their growth projections raised from that made in October last. Japan's growth projection was increased by only 0.1 per cent from 3.2 per cent in October to 3.3 per cent.
Reacting to the IMF's projections, Union Minister Rajeev Chandrasekhar took to Twitter to state that Prime Minister Narendra Modi government's Atmanirbhar Bharat policies were continuing to propel India's strong economic growth, which is expected to be the highest amongst major economies.
- Aatmanirbhar Bharat
- Budget 2022
- Budget 2022-23
- Build Back Better policy
- Indian Economy
- International Monetary Fund
- PM Modi
- Prime Minister Narendra Modi
- Rajeev Chandrasekhar
- Union Budget
- United States
- World Economic Outlook
- financial year
- real estate