INSUBCONTINENT EXCLUSIVE:
in 2020, an impressive over one percentage point ahead of China's estimated growth of 6.2 per cent in these two years, IMF said on Monday
attributing pick up to lower oil prices and a slower pace of monetary tightening
The International Monetary Fund in its January World Economy Outlook update on Monday said India would remain fastest growing major
economies of world."India's economy is poised to pick up in 2019, benefiting from lower oil prices and a slower pace of monetary
tightening than previously expected, as inflation pressures ease," IMF said.Despite fiscal stimulus that offsets some of impact of higher US
tariffs, China's economy will slow down due to combined influence of needed financial regulatory tightening and trade tensions with US,
IMF said in its latest report.Growth in emerging and developing Asia will dip from 6.5 per cent in 2018 to 6.3 per cent in 2019 and 6.4 per
cent in 2020, it said.China which grew at 6.9 per cent in 2017, as compared to 6.7 per cent by India, had a growth rate of 6.6 per cent in
In next two years - 2019 and 2020 - it is projected to grow at 6.2 per cent each, IMF said.The latest IMF projections remains unchanged from
its previous World Economic Outlook projections
While, Chinese growth rate has been on a downward slope, according to IMF, India has experienced an upward trajectory in these years.The IMF
said India's growth rate in 2018 was 7.3 per cent.It has been projected to grow at 7.5 per cent in 2019, which is a marginal 0.1 per cent
above its previous projection
In 2020, India is projected to grow at 7.7 per cent.The IMF report comes days after PwC's Global Economy Watch said that India is likely
to surpass United Kingdom in world's largest economy rankings in 2019."India and France are likely to surpass UK in world's largest
economy rankings in 2019, knocking it from fifth to seventh place in global table," report said."India should return to a healthy growth
rate of 7.6 per cent in 2019-20, if there are no major headwinds in global economy such as enhanced trade tensions or supply side shocks in
oil.""The growth will be supported through further realisation of efficiency gains from newly adopted Goods and Services Tax and policy
impetus expected in first year of a new government," said Ranen Banerjee, Partner and Leader - Public Finance and Economics, PwC India.
