IMF Expects Indian Economy to Grow 8%

Indian Finance Minister Arun Jaitley and International Monetary Fund (IMF) Managing Director Christine Lagarde attend IMFC plenary during the IMF/World Bank annual meetings in Washington, U.S., October 14, 2017. REUTERS/Yuri Gripas

According to the chief, Christine Lagarde of International Monetary Fund, the impact of demonetisation and goods and service tax is of short-term over the Indian Economy and due to structural reforms were undertaken by the government for last few years India is on a growth track.

The chief also believes that clubbing 40 different taxes into one single goods and service tax is a great effort and it is least surprising that there is a little bit of a short-term slowdown as a result but for the medium term, a solid track can be seen ahead of the Indian Economy.

IMF on 17 Oct 2017 declared India’s growth forecast for 2017-18 to 6.7% from its earlier estimate of 7.2%, however, India is expected to regain the fastest growing major economy tag next year when it is forecast to grow 7.4% again slower than earlier estimate of 7.7% but surprisingly higher than China’s 6.5%. IMF also expects the Indian economy to grow 8% in the medium term on the back of reforms undertaken so far.

All these reforms, esp., these three suggested by IMF, i.e., addressing the corporate and banking sector weaknesses, continued fiscal consolidation through revenue measure and improving the efficiency of labour and product markets will going to create job opportunities in India. She also addressed saying that fiscal deficit has been reduced and inflation is down significantly.

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