WASHINGTON, DC, December 22, 2022: The International Monetary Fund (IMF) has projected Real GDP to grow at 6.1 % in financial Year (FY) 2023-24 and in the FY2022-23 the projection is 6.8%. In FY2021-22 the real GDP grew by 8.1%, says the IMF it its 2022 Article 4 Consultation with India.
The current account deficit is expected to increase to 3.5 percent of GDP in FY2022/23 as a result of both higher commodity prices and strengthening import demand.
It says, “The economy has rebounded from the pandemic-related downturn but is facing new headwinds. The authorities have responded with fiscal policy measures to support vulnerable groups and to mitigate the economic impact of commodity price increases, as well as with front-loaded monetary policy tightening to address elevated inflation. A world class public digital infrastructure is facilitating innovation, productivity improvements and access to services. Further structural reforms, including to address the adverse impact of climate change, are needed to secure strong and sustainable growth.”
So, the key takeaways, according to the IMF, are the Indian economy has rebounded but is facing new headwinds, fiscal policy should ensure medium-term sustainability, monetary policy should be tightened, financial sector policies should maintain financial stability and support growth and there should be structural reforms for resilient and inclusive growth.
A statement by the Krishnamurthy Venkata Subramanian, IMF Executive Director for India, Sanjay Hansda, Senior Advisor to Executive Director and Simanchala Dash, Advisor to Executive Director is included in the press release link below.
The report will be updated as and when required.
