Winning Bizness Desk

Mumbai. The International Monetary Fund (IMF) has estimated that India's economy could grow at a rate of 6 per cent in the current financial year. According to estimates, India will be the fastest growing major economy in the world despite facing significant challenges like financial sector turmoil, inflationary pressures, impact of Russia-Ukraine war and COVID-19 pandemic in the last three years. The IMF has revised its global growth forecast due to a slowdown in economic activity due to higher interest rates. It warned that a sharp increase in financial system turmoil could push output closer to recessionary levels. According to the IMF, the inflation rate in India will come down to 4.9 per cent in the current year and 4.4 per cent in the next financial year. The report forecasts global growth to bottom out at 2.8 percent in 2023, though it could pick up to 3 per cent in 2024.

IMF MD praised India's efforts

IMF Managing Director Kristalina Georgieva has praised India's efforts in leveraging digitization to address the challenges posed by COVID-19. He said, India has not only helped in weathering the storm but has also created new opportunities for development and employment. India's contribution to global growth in 2023 is also expected to be 15 per cent. India's share of global GDP growth is expected to surpass that of France and the UK by 2028. This will make India a key country in driving global economic growth. With 20 countries contributing 75 per cent to global growth, India remains among the top contributors along with China, the US and Indonesia, further cementing its position as a major economic power.

Foundation for long term growth

Georgieva said, India's budget has increased capital expenditure on important infrastructure projects. This will create a strong foundation for long-term growth and help India achieve sustainable development. He also appreciated India's growing investments in the green economy, including clean and renewable energy. This fiscal responsibility is expected to translate into a medium-term framework supporting India's public finances. The IMF growth forecast for India is lower than that of the Reserve Bank of India. RBI has projected a growth of 6.4 per cent in the current year. Anne-Marie Gulde-Wolf, Deputy Director of the IMF's Asia and Pacific Department, said the Indian economy is expected to do well, maintaining its position as one of the fastest growing economies in the world.