International Monetary Fund (IMF) has declared the India’s growth is projected to notch up to 7.5% in 2016-17. And as per IMF prediction India will overtake the China’s GDP by more than 1%. These growth in India is driven by private consumption as well as by increased industrial activity.
In recent World Economic Outlook report IMF said that they are retaining India’s last October forecast because recovery of private investment is expected to further strengthen growth. It also said that growth will continue to be driven by private consumption, which has benefited from lower energy prices and higher real incomes.
The WEO report also stated that monetary conditions remain consistent with achieving the inflation target of 5 per cent in the first half of 2017, although an unfavorable monsoon and an expected public sector wage increase pose upside risks. It also made a way for Fiscal consolidation to continue underpinned by revenue reforms and further reductions in subsidies.
The report also stated that in power sector Sustaining strong growth over the medium term will require labour market reforms and dismantling of infrastructure bottlenecks.
Extra Info :
IMF Headquartered : Washington D.C.
Founded In : 1945
Members : 188
Managing Director : Christine Lagarde
So lets discuss some questions related to this article which can be asked in the upcoming exams:
1. IMF has projected How much percentage of growth in 2016-17 ?
2. Who is the Managing Director of IMF and where is the headquarter of IMF ?
3. According to IMF India’s growth rate will overtake China’s growth rate by how much percentage ?
Courtesy : Times Of India