The IMF expects India's economic growth rate to rise to seven percent in the next financial year

Singapore, Ta. 23 October 2019, Wednesday

The International Monetary Fund (IMF) is projecting the economic growth rate of India to improve to around 7% in the next financial year. This possibility is being seen as a result of measures like relaxation in monetary policy and reduction in corporate tax.

With our projections for the current fiscal year at 8.5 percent, we expect India's economic growth rate to be around 7 percent in the next financial year. Factors, including concessions in monetary policy, will support growth, said Jonathan Ostry, deputy director of the IMF's Asia Pacific division.

We see the recent cuts in taxes, the recent steps taken by the government to tackle weakness in the financial sector, and measures to support the development sector, fueling economic growth.

Speaking about the slowdown in the Indian economy in recent quarters, he said, "This decline has surprised many of us, including the IMF."

There was no single cause for the downturn but several factors, including corporate and regulatory uncertainties, the non-banking financial sector and the tension in the countryside, were the cause, he said.

He emphasized the importance of covering services in the Free Trade Partner Agreement when asked about the Regional Comprehensive Economic Partnership. India is moving cautiously in the Free Trade Partner Agreement.

We consider service to be an important source of growth and productivity that can increase investment in the coming period.