International Monetary Fund has looked closely at the growth of countries around the world and has released the World Economic Outlook Report in January 2021. In the WEO report, the IMF has projected an optimistic growth rate of Indian Economy to be 11.5% in 2021 and coming in second is China with 8.1% projected growth rate. IMF Projects Impressive 11.5% Growth Rate For India In 2021.
Many aspects were taken into consideration like:
Approvals of various vaccines around the world and vaccination drive being carried out since December by countries like Israel, UAE, India, China, US, UK, Myanmar etc.
Therapies and containment efforts around the world.
Bringing down pandemic levels by the end of 2022.
Additional and renewed fiscal policy support to a lower deficit in 2021 in developed and developing countries.
The most startling finding of the report is that in 2020, India had seen an 8% contraction in growth, and from a negative rate, the projected growth rate is looking at a two-digit figure of 11.5% in 2022. India is the only country showing a double-digit growth rate and shows a strong economic rebound after the economy had seen a setback during and post-pandemic.
According to IMF Managing Director, Kristalina Georgieva, India has taken decisive action and steps to counter the pandemic and also has handed the economic consequences and policy support very well. She also commended the Indian Government for handling the monetary policy and fiscal policy incredibly well, especially when other emerging markets are compared.
According to another article by Deloitte, the Indian economy could see an economic boost when the Reserve Bank of India will roll out liquidity measures and government spending is reduced.
We at Alpha InfoLab also are very optimistic that the Indian economy will see a spurt in growth that could spill into 2022 and 2023.
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