Why IMF says, India’s economic growth is “much weaker” than expected?
As India is going through an economic crisis, now IMF released a statement saying India’s economic growth is “much weaker” than expected. IMF spokesperson Gerry Rice said that the major reasons for this slow-down are corporate and environmental regulatory uncertainty and lingering weaknesses in some non-bank financial companies.
The International Monetary Fund (IMF) in July projected a slower growth rate for India in 2019 and 2020, a downward revision of 0.3 percent for both the years and said that India’s GDP will now progress respectively at the rate of 7 and 7.2 percent.
However, India will still be the fastest-growing major economy in the world ahead of China.
As per the data released by National Statistical Office (NSO), weak manufacturing and consumption numbers dragged the country’s GDP growth to a six-year low of 5 percent in the first quarter (April-June) of the current fiscal.
Many experts and forums presented their point of view and suggestions to the government regarding this economic problem. The former Prime Minister Manmohan Singh also put his point of view. He said that Centre’s aim to make India a $5-trillion economy by 2024, is a “pipe dream”. He further added, “The worst part of the current situation is that the government is complacent enough not to understand that the country is in a protracted economic strike.”