Home / Knowledge / News / Textiles / IMF projects economic growth for India at 7.3% for FY19

IMF projects economic growth for India at 7.3% for FY19

Oct '18
IMF projects economic growth for India at 7.3% for FY19
The International Monetary Fund (IMF) has projected a 7.3 per cent growth rate for India this fiscal and 7.4 per cent in the next in its World Economic Outlook (WEO) report. India’s growth rate in 2017 was 6.7 per cent. This acceleration reflected a rebound from transitory shocks with strengthening investment and robust private consumption, according to IMF.

With a strong medium-term growth prospects of 7.75 per cent because owing to ongoing structural reforms, the projections are slightly lower than those estimated in the April 2018 WEO for 2019, a news agency reported quoting the document released in Bali on October 8 during the annual meeting of the IMF and the World Bank.

If the projections prove right, then India will reclaim the tag of the fastest growing major economies of the world, crossing China with more than 0.7 percentage point in 2018 and an impressive 1.2 percentage point growth lead in 2019.

China was the fastest growing economy in 2017, being ahead of India by 0.2 percentage points.

A high interest burden and risks from rising yields in India require continued focus on debt reduction to establish policy credibility and build buffers. "These efforts should be supported by further reductions in subsidies and enhanced compliance with the Goods and Services Tax," the IMF report said.

Noting a rising inflation in India, IMF estimated that to be 3.6 per cent in fiscal 2017-18, with a 4.7 per cent projection for fiscal 2018-19, compared with 4.5 per cent in fiscal year 2016-17, amid accelerating demand and rising fuel prices.

IMF’s 2019 growth projection for China is lower than the April one in light of the latest round of US tariffs on Chinese imports.

Growth is projected to moderate from 6.9 per cent in 2017 to 6.6 per cent in 2018 and 6.2 per cent in 2019 in China, implying a slowing external demand growth and necessary financial regulatory tightening, according to the document.

The US growth rate for 2018 is 2.9 per cent and that of 2019 has been powered to 2.5 per cent. The impact of the US-China trade conflict is likely to be felt beyond the two economic superpowers.

Aggregate growth in the emerging market and developing economy group stabilised in the first half of 2018, while emerging Asia continued to register strong growth, supported by a domestic demand-led pick-up in the Indian economy from a four-year-low pace of expansion in 2017. (DS)

Fibre2Fashion News Desk – India

Must ReadView All

Foreign brands competing with local clothing companies in Vietnam

Apparel/Garments | On 17th May 2021

Foreign brands competing with local clothing companies in Vietnam

International brands are giving tough competition to the local...

Pic: Casimiro PT / Shutterstock.com

E-commerce | On 17th May 2021

London-based global fashion platform Lyst raises £60mn

Lyst, a London-based global fashion aggregator that operates an...

Pic: Shutterstock

Textiles | On 17th May 2021

Prime Content| China cotton index may remain stable in coming months: TexPro

The China cotton is expected to remain above 16,000 RMB per ton or...

Interviews View All

Textile Industry, Head honchos

Textile Industry
Head honchos

The pandemic has reinstated need for organised retail spaces in Tier II...

Textile Industry, Head honchos

Textile Industry
Head honchos

One thing is certain, online sales will go up

Textile Industry, Head honchos

Textile Industry
Head honchos

Indian apparel industry looks poised for slow death

Kriti Kanodia,

Kriti Kanodia

A TV show in 2012 where actor Sonam Kapoor <g...

Shivendra Nigam,

Shivendra Nigam

Delhi-headquartered Cantabil Retail India Ltd was founded by Vijay Bansal...

Harleen Kaur,

Harleen Kaur

Established in 2017 and headquartered New York, the label Harleen Kaur...

Johann-Philipp Dilo, Dilo Group

Johann-Philipp Dilo
Dilo Group

German company Dilo Group is one of the leading equipment suppliers of...

Keith McMillen, Bebop Sensors

Keith McMillen
Bebop Sensors

Bebop Sensors' smart fabrics allows for a new level of interaction between ...

Sachin Pendharkar, Dieffenbacher India Pvt Ltd

Sachin Pendharkar
Dieffenbacher India Pvt Ltd

Germany-based Dieffenbacher Group is a producer of high-quality composites ...

Ruma Devi, Gramin Vikas Evam Chetna Sansthan

Ruma Devi
Gramin Vikas Evam Chetna Sansthan

Ruma Devi is a jet-setting promoter of artisans who has empowered...

Vidur Adlakha & Riccardo Bennidini, La Fuori

Vidur Adlakha & Riccardo Bennidini
La Fuori

With an active presence in US, Italy and India, clothing brand La Fuori...

Sweta Agarwal, A Humming Way

Sweta Agarwal
A Humming Way

A Humming Way (AHW) is inspired by the old-world regalia of Rajasthan...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies


Leave your Comments

May 2021

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

Advanced Search