Why IMF sees GDP boost for India in FY22
Jan 28, 02:01

The International Monetary Fund, in its January World Economic Outlook update, narrowed the 2020-21 GDP contraction forecast for India to 8 per cent from 10.3 per cent. It also forecast India's GDP to grow by 11.5 percent in 2021-22 and 6.8 percent in 2022-23, making the country the fastest growing major economy for both years. There are two distinct reasons for the revision. One is the low-base effect of the current financial year. The lower the contraction, the higher the 'bounceback'. The second is the strong rebound in the economy, expected to continue in the calendar year. "Notable revisions to the forecast include the one for India, reflecting carryover from a stronger-than-expected recovery in 2020 after lockdowns were eased," the IMF said, news that Finance Minister Nirmala Sitharaman will cheer ahead of the Union Budget on February 1.

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