Significantly off the mark, says India’s chief economic adviser on IMF downgrade
Krishnamurthy Subramanian's projections are more in line with the Reserve Bank of India, which pegged GDP growth at 10.5 percent for FY2022
August 03, 2021 / 11:36 AM IST
CEA Krishnamurthy Subramanian
India’s chief economic adviser Krishnamurthy Subramanian has said the International Monetary Fund's (IMF) recent downgrade of the country’s growth projection is "significantly off the mark."
Last week, the IMF cut India's gross domestic product (GDP) growth forecast to 9.5 percent for the fiscal year 2021-22 from 12.5 percent, citing the hit on economic activity and demand due to the deadly second wave of the COVID-19.
"Growth prospects in India have been downgraded following the severe second COVID wave during March-May and expected slow recovery in confidence from that setback," the multilateral institution said in its latest World Economic Outlook report.
In an interview
to CNBC on August 2, Subramanian said the 3 percent downgrade by the IMF was driven by saliency bias where the focus was more on striking information while data that was comparatively less remarkable was ignored.