After battling two waves of Corona, India’s economy has started showing improvement. The International Monetary Fund (IMF) has predicted that India’s growth rate will be the fastest in the world till next year. The IMF has projected economic growth for India at 9.5% in 2021 and 8.5% in 2022. After this it is clear that the Indian economy is coming out of the grip of Corona.
IMF Chief Economist Gita Gopinath said after the release of this report that vaccination has happened rapidly in India. This has helped in a faster recovery in the economy.
Growth was negative for the first time in 40 years
In the financial year 2020-21, for the first time in 40 years, the country’s economic growth fell to negative 7.3%. However, with the decline in corona cases, the economy car also picked up pace. As a result, economic growth reached a record 20.1% in the first quarter of the current financial year 2021-22. However, this was due to weak base last year and pick-up in business activity.
Growth of America and China will be less than India
According to the IMF, the US economy is projected to grow at 6% in 2021 and 5.2% in the next year. At the same time, China’s economy can grow at the rate of 8% in 2021 and 5.6% in 2022.
Global growth will be 5.9%
India’s growth rate projections have been kept constant over the last estimate for July this year. However, it is 1.6% lower than the estimate for April. According to the IMF, global growth is projected to be 5.9% in 2021 and 4.9% in 2022.
RBI also expects 9.5% GDP growth
The Reserve Bank of India (RBI) has projected GDP growth at 9.5% for the financial year 2021-22. In the first quarter of the financial year 2022-23, the economic growth rate has been estimated at 17.2%.