Indian economic growth to rebound to 7% next fiscal: IMF

29 Oct '19

2 min read

Pic: Shutterstock

The International Monetary Fund (IMF) foresees India’s economic growth rebounding to around 7 per cent next fiscal, supported by measures like monetary policy stimulus and corporate income tax cuts, according to Jonathan Ostry, deputy director of IMF’s Asia Pacific department, who said the slowdown in India in recent quarters took the IMF by surprise.

The recent tax cuts, the government’s progress in addressing lingering weaknesses in the financial sector and measures to support growth sectors are seen as factors underpinning growth in the near term, Ostry said.

“There wasn’t a single cause for the slowdown. There were many different causes at work including corporate and regulatory environmental uncertainties, the stresses in the non-bank financial sector, (and) stresses in the rural sector, among others,” a news agency report from Singapore quoted Ostry as saying.

On the Regional Comprehensive Economic Partnership (RECP) being negotiated, he underlined the importance of having services included in the free-trade partnership agreement.

There is a need to take steps to invigorate the deliberation process and structural reforms more generally because India has a potential enormous demographic dividend over the next couple of decades through which about 150 million people will be entering the workforce, he pointed out.

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