Gita Gopinath, an official of International Monetary Funds stated that India’s economic projection released by the latest World Economic Outlook remains unchanged from its previous update of July.
India is doing well in terms of vaccinating its people and this is certainly helpful in its economy. The financial institution projected a 9.5 percent growth rate for India in 2021.
Gita Gopinath projection on Indian Economy
Gita Gopinath, Chief Economist of the IMF further added that they don’t have a chance to our growth forecast for this year for India’s economy as India came out of a very, very tough second wave and that led to a big downgrade in July but they have no change in its growth rate projections as of now.
India’s economy contracted by 7.3 percent after the first wave of COVID-19 pandemic and long lockdown in 2020-21. The current projection of growth by 9.5 percent is for the year 2021 and 8.5 percent for the year 2022.
The IMF projected world economic growth by 5.9 percent in 2021 and 4.9 percent in 2022. The United States is projected to grow at six percent this year and 5.2 percent the next year. China is projected to grow at 8 percent in 2021 and 5.6 percent in 2022.
Ms. Gita Gopinath said there are many challenges that India’s economy already faces about the financial market, about the fact that the virus is not gone yet. The Indians are doing well in terms of vaccination rates and that’s certainly helpful.
Malhar Nabar, who heads the World Economic Studies Division in the IMF’s Research Department that produces the World Economic Outlook (WEO), said that there is still room to provide more support if needed if the pandemic takes a turn for the worse, to provide it in a targeted manner to the worst affected households and firms.
He added that but going forward over the medium term, it was important to put in place a credible medium-term strategy to bring down the debt to GDP ratio, and create space to meet the future development needs and infrastructure needs of India’s economy.