News: IMF denies 8% growth projection for India

Economy & Policy

IMF denies 8% growth projection for India

When asked about the IMF's view on India's growth projection and the variance with the 8% figures, the spokesperson clarified, "The IMF's Executive Board, comprising executive directors representing countries or groups of countries, is distinct from the work of the IMF staff."
IMF denies 8% growth projection for India

A representative from the International Monetary Fund has clarified that the growth projections put forth by Krishnamurthy Subramanian, an Executive Director at the IMF, regarding India's economic growth are his own personal views and do not reflect the stance of the organisation. 

During an event in New Delhi on March 28, Subramanian suggested that the Indian economy could achieve an 8% growth rate until 2047 if the nation continues to reinforce the effective policies implemented over the past decade and accelerates its reform efforts. 

Last month, Subramanian expressed his perspective, stating, "So, the basic idea is that with the kind of growth that India has registered in the last 10 years, if we can redouble the good policies that we have implemented over the last 10 years and accelerate the reforms, then India can grow at 8 per cent from here on till 2047." 

However, offering a different viewpoint, Julie Kozack, a spokesperson for the IMF, clarified on Thursday that Subramanian's remarks were made in his capacity as India's representative at the IMF, reported PTI. 

When questioned about the IMF's stance on India's growth projection and the discrepancy with Subramanian's figures, Kozack explained, "We do have an Executive Board. That Executive Board is made up of executive directors who are representatives of countries or groups of countries, and they make up the Executive Board of the IMF. And that's distinct, of course, from the work of the IMF staff." 

In its latest World Economic Outlook update for January, the IMF revised India's growth forecast upwards. It anticipates India's GDP to expand by 6.7% in FY24, compared to the 6.3% forecast in its October 2023 report. For FY25 and FY26, the IMF projects India's GDP growth to remain steady at 6.5%. 

The IMF report stated, "Growth in India is projected to remain strong at 6.5% in both 2024 (FY25) and 2025 (FY26), with an upgrade from October of 0.2 percentage point for both years, reflecting resilience in domestic demand."

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