Indian economy on solid growth track, says IMF chief Lagarde


NEW DELHI, Oct. 16: The Indian economy is on a solid growth track in the medium and long term due to the structural reforms undertaken by the government, and the current slowdown due to implementation of the goods & services tax (GST) and demonetisation is short term, International Monetary Fund (IMF) chief Christine Lagarde has said.

The IMF on Tuesday lowered India's growth forecast for 2017-18 to 6.7% from its earlier estimate of 7.2%, citing lingering impact of demonetisation and transition cost to GST. But, India is expected to regain the fastest growing major economy tag next year when it is forecast to grow 7.4% (slower than earlier estimate of 7.7%), higher than China's 6.5%. IMF also expects the Indian economy to grow 8% in the medium term on the back of reforms undertaken so far.

"We have slightly downgraded India. However, we believe that India is on a growth track for the medium and long term, that is much more solid as a result of the structural reforms that have been conducted in India in the last couple of years," Lagarde told a news conference in Washington, DC.




"Now, of course the demonetisation that took place, of course collapsing 40 different taxes into one single GST is a monumental effort and given the implementation associated with, it is hardly surprising that there is a little bit of a short-term slowdown as a result but for the medium term we see a very solid track ahead of the Indian economy," she said.

Lagarde was confident that jobs would be created in India on the back of reforms unveiled by the government. The Narendra Modi-led government has faced criticism after growth slowed to a three-year low of 5.7% in the June quarter, prompting the PM to slam critics for spreading what he called was "pessimism".




"The (fiscal) deficit has been reduced, inflation is down significantly and the structural reforms will deliver jobs the Indian population, particularly the young Indian people, expect in the future," the IMF chief said indicating a strong support for the government's reforms agenda.TOI

Related News

Parliamentary committee directs govt to present casino regulations bill

Kathmandu, Sept 30: The Social Justice and Human Rights Committee under the Legislature-Parliament today has directed the government to bring the then enterpriser of Nepal Recreation Centre under the ambit of law. The centre was accused of not paying the tax to government and not providing the salary to the…

Essar-Rosneft deal not violative of sanctions: U.S.

WASHINGTON, Oct. 20: The United States does not see violation of any U.S.-EU sanctions in the recent deal between India’s Essar Oil and the Russian oil giant Rosneft, in which the Russian government has a majority stake. “I don’t think we see any violation of any U.S.-EU sanctions stemming from this…

Despite efforts, India moves up only one place on ease of doing business rankings

NEW DELHI, (INDIA), Oct. 26: India moved up only one position in the International Finance Corporation's (IFC) ease of doing business rankings, triggering a strong reaction from the Indian government which said the string of reform initiatives undertaken by it in the last one year had not been factored in by the World Bank arm. The…

Nepal eligible for MCC fund

Kathmandu, Nov. 5: Nepal has passed 16 out of 20 indicators on U.S. Millennium Challenge Corporation’s Scorecard, and thus become eligible for receiving MCC fund. The U.S. Government’s Millennium Challenge Corporation (MCC) released its fiscal year 2017 scorecards this week – a key component in the agency’s annual competitive selection…

Indian Rs. 500, Rs. 1000 currency notes to be out of circulation from midnight Tuesday

NEW DELHI, Nov. 9: Indian Five hundred and 1,000 rupee notes will cease to be legal tender from midnight on Tuesday, Prime Minister of India Narendra Modi announced in a surprise address to the nation. He said the decision was taken to root out the menace of black money and corruption.…

Pakistan won't be able to copy new notes: Intelligence agencies

NEW DELHI, Nov. 10: Intelligence agencies of India vetted the new denominations of Rs 2,000 and Rs 500 notes asserting that its security features will be next to impossible to replicate for Pakistan and organised criminal networks for some time to come.A top government official without going into the details,…


Find Us on Facebook

From Social

Tokyo (Japan), Sept. 13: A new leadership assumed responsibilities at the Non Resident Nepalese Association (NRNA), Japan on Sunday. The new office bearers took oath of office and secrecy after a long fought battle resulting from dissatisfaction from those who…

Lama led officials assume responsibility in NRNA Japan