India to grow at 7.4% in 2018 |
India is expected to grow at 7.4% in 2018 and 7.8% in 2019, leaving its nearest rival China behind respectively at 6.6 and 6.4% in the two years, the IMF said. With growth picking up after falling sharply in the second quarter of 2017 due to “one-off factors”, India in 2018 and 2019 would re-emerge as one of the fastest growing major economies, it said. However, the latest IMF growth rate projection remains unchanged since the last one in October. India`s growth rate in 2016 was 7.1% as against China`s 6.7%. Two major economic reforms – demonetisation and goods and services tax (GST) – resulted in a slight lower growth rate of 6.7% in 2017.China with 6.9% growth jumped marginally ahead of India in 2017. India`s projected growth provide some offset to China`s gradual slowdown, the IMF said. The IMF explained this is due to the strong private consumption as well as fading transitory effects of the currency exchange initiative and implementation of the national goods and services tax. Over the medium term, growth is expected to gradually rise with continued implementation of structural reforms that raise productivity and incentivise private investment, the WEO said.
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