With the central government preparing to present the Budget 2022, the International Monetary Fund (IMF) predicted that the Indian economy would grow at 9 per cent in 2021-22 and will remain consistent (at 9%) in the next economic year 2022-2023.
Earlier in October last year, the IMF had predicted India’s GDP growth at 9.5% in 2021 and 8.5% for 2022.
India’s growth prospects for FY23 and FY24 have been marked up “on expected improvements to credit growth—and, subsequently, investment and consumption—building on the better-than-anticipated performance of the financial sector,” the fund said.
Among all economies, the Indian economy has been projected as a stable economy. While several economies are expected to dip next year, the Indian economy is forecasted to grow at the same pace. The IMF has predicted that the US economy will grow at 4% while China will grow at 4.8%.
Recent policy changes in the United States like the removal of the Build Back Better policy was the reason for the IMF to downgrade the growth in the global economy.
The ongoing retrenchment of China’s real estate sector and slower-than-expected recovery of private consumption have also had limited growth prospects, the report noted
