IMF predicts 7.3 % growth for India in 2018, hails PM Modi’s economic reforms

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The International Monetary Fund (IMF) on October 9 predicted a growth rate of 7.3 per cent for India in the current year and 7.4 per cent in 2019.

“India’s growth is expected to increase to 7.3 per cent in 2018 and to 7.4 per cent in 2019 (slightly lower than in the April 2018 World Economic Outlook [WEO] for 2019, given the recent increase in oil prices and the tightening of global financial conditions), up from 6.7 per cent in 2017,” the IMF said during its World Economic Outlook (WEO).

IMF also acknowledged the economic reforms carried out under Indian Prime Minister Narendra Modi and projected India to be the world’s fastest growing major economy in year 2018-19.

WEO added, “In India, important reforms have been implemented in recent years, including the Goods and Services Tax, the inflation-targeting framework, the Insolvency and Bankruptcy Code, and steps to liberalize foreign investment and make it easier to do business.”

WEO further added, “India’s medium-term growth prospects remain strong at 7.75 per cent, benefiting from ongoing structural reform.”

Beyond 2019, the IMF sees India’s growth rate improving “owing to structural reforms and a still-favorable demographic dividend.”

In year 2017, India had recorded a growth rate of 6.7 per cent.