IMF projects 7.3 per cent growth, hails GST, bankruptcy code

Washington: India is projected to grow at 7.3 per cent in 2018 and 7.4 per cent next year, the IMF said on Tuesday, predicting that the country will regain the tag of the world’s fastest growing major economy this year, surpassing China with more than 0.7 percentage points.

In 2017, India had clocked a 6.7 per cent growth rate.

The IMF in its latest World Economic Outlook (WEO) report praised the Narendra Modi government for some important reforms in India, including the Goods and Services Tax (GST), the inflation-targeting framework, the insolvency and bankruptcy code and steps to liberalise foreign investment and make it easier to do business.

“India’s growth is expected to increase to 7.3 per cent in 2018 and 7.4 per cent in 2019… up from 6.7 per cent in 2017,” said the WEO report.

This acceleration, the world body said, reflected a rebound from transitory shocks (the currency exchange initiative and implementation of the GST), with strengthening investment and robust private consumption.