India will not lose the tag of being the fastest growing economy in the world to China anytime soon, The Economic Times reported the International Monetary Fund as saying on Tuesday. The country’s growth figure for last year is likely to be higher than China’s, the global organisation added.
The World Economic Outlook, an International Monetary Fund publication, has revised the country’s growth forecast for the financial year 2017 to 6.8%, just ahead of China’s 6.7%. It has also said that India’s growth forecast for financial year 2018 will be 7.2% and that for 2019 it will be 7.7%. The International Monetary Fund had in January pegged India’s growth rate for 2016 at 6.6% because of the impact of demonetisation.
China’s economy is expected to steadily decrease to 6.6% in 2017 and 6.2% in 2018 due to the “complex process of rebalancing” by reorienting demand from exports and investment in consumption. The report said India’s medium-term growth prospects were favourable, with growth expected to rise to about 8% over the medium term due to implementation of key reforms, loosening of supply-side bottlenecks, and appropriate fiscal and monetary policies, Mint reported.
Limited-time offer: Big stories, small price. Keep independent media alive. Become a Scroll member today!
Our journalism is for everyone. But you can get special privileges by buying an annual Scroll Membership. Sign up today!