India's economy is poised to pick up this year: IMF

The International Monetary Fund (IMF) has said India's economy is poised to pick up this year. IMF's World Economic Outlook Update, released yesterday by its chief economist Gita Gopinath in Davos, projected that India will grow at 7.5 per cent this year and 7.7 per cent in 2020, an impressive over one percentage point ahead of China's estimated growth of 6.2 per cent in these two years. 

The IMF attributed the pick up to lower oil prices and a slower pace of monetary tightening. IMF said India would remain one of the fastest growing major economies of the world. Despite fiscal stimulus that offsets some of the impacts of higher US tariffs,



China's economy will slow down due to the combined influence of needed financial regulatory tightening and trade tensions with the US.

 

China which grew at 6.9 per cent in 2017, as compared to 6.7 per cent by India, had a growth rate of 6.6 per cent in 2018.  The IMF said while, the Chinese growth rate has been on a downward slope India has experienced an upward trajectory in these years.

 

The IMF report comes days after the Price waterhouse Cooper's Global Economy Watch said that India is likely to surpass the United Kingdom in the world's largest economy rankings this year.