IMF raises India’s growth projection to12 per cent for FY22

The latest edition of the International Monetary Fund’s (IMF) World Economic Outlook has brought good news for the Indian government. The IMF has raised India’s growth projection to 12.5 per cent for FY22 in its fresh outlook, putting the country on top in terms of GDP growth. The 12.5 per cent growth projection is the highest not just among the countries that form the emerging economies but also among the elite group of advanced economies. 

Despite its positive growth projection for India, IMF estimates GDP to contract by 8 per cent. However, the upward growth projection for the current fiscal that started on April 1 is good news for India. It may be noted that IMF’s latest growth projection for India is one per cent higher than its previous prediction of 11.5 per cent in January. The IMF has also revised India’s growth projection for the next fiscal starting April 1, 2022, indicating that the country's long-term growth momentum will be stable. The international body has increased India’s growth projection for FY23 from 6.8 per cent to 6.9 per cent.

“It’s one year since Covid-19 was declared a global pandemic, a year of terrible loss of lives and livelihoods. The rising human toll worldwide and the millions of people that remain unemployed are grim markers of the extreme social and economic strain that the global community still confronts,” the IMF’s outlook stated. As far as the global scenario is concerned, the outlook projects the global economy to grow at 6 per cent in 2021 as against a contraction of 3.3 per cent in 2020 and moderate to 4.4 per cent in 2022.