International Monetary Fund (IMF) after revising forecast, stated that the Indian economy will show a strong rebound and grow as much as 11.5 per cent on year in FY-22.
However, last October, it had projected an 8.8 per cent real GDP growth for India in FY-22, highest globally. For the current fiscal, the IMF had forecast a record 10.3 per cent contraction.
With this, India will emerge as the only key nation to record a double-digit growth and reclaim the status of the world’s fastest-growing major economy, it added. India’s real gross domestic product (GDP) shrank as much as 8 per cent in FY21 due to the Covid-19 pandemic, the multilateral body said. In FY23, the economy will likely grow 6.8 per cent, it added.
IMF Managing Director Kristalina Georgieva this month said “India actually has taken very decisive action, very decisive steps to deal with the pandemic and to deal with the economic consequences of it”.
The Finance Ministry had also exuded confidence that India would recover at a fast pace and reach pre-Covid levels by the end of this fiscal unless a second wave of cases was triggered by a fatigue with social distancing.