IMF pegs India's growth at 9.7 pc in 2010

The growth is based on strong local consumer demand

g n bureau | October 8, 2010


World Economic Outlook (WEO)
World Economic Outlook (WEO)

The International Monetary Fund has revised its growth forecast for India in FY '10, raising it to 9.7 percent from the July figure of 9.5 pc.

The Washington based lender said that India's growth-surge is based on local consumer demand. “Low reliance on exports, accommodative policies, and strong capital inflows have supported domestic activity and growth,” the IMF said in the report titled ‘World Economic Outlook 2010’.

“The rapid pace of domestic activity, evidenced by rapidly rising inflation, led the central bank to increase the repo policy rate," the report held, “Robust corporate profits and favourable external financing will encourage investment.”

Last month, Manila-based Asian Development Bank (ADB) predicted a 8.5 pc growth for India, upraded from April’s 8.2 percent.

Earlier this month, Goldman Sachs Group Inc increased India’s economic growth forecast to 8.5% from 8.2% for the financial year ending March 31.

The RBI projection for India’s growth in 2010 is however conservative – 8.5 percent - same as PM’s economic advisory council's prediction. However, the council projected India’s growth at 9 percent in 2011.

But the IMF has lowered India’s growth next year. “It is projected to grow at 8.4 percent in 2011,” the outlook said.

China is set to maintain its double-digit growth this year at 10.5 pc while it may sink to 9.6 pc in 2011, according to the IMF report.

"The global trade is forecast to expand by 4.8 percent in 2010 and 4.2 percent in 2011, with a temporarily slowdown during the second half of 2010 and the first half of 2011,” it said.

Read the report

Comments

 

Other News

How social media is reshaping elections

Since Brazil’s return to direct presidential elections in 1985, no candidate who finished second in the first round of polling had ever won the presidency. Luiz Inácio Lula da Silva, now 81, has just done it. What explains the comeback, and what changed in Brazilian politics to make it possi

Cabinet approves Dearness Allowance, Dearness Relief

The union cabinet chaired by prime minister Narendra Modi on Wednesday approved the release of an additional instalment of Dearness Allowance (DA) to central government employees and Dearness Relief (DR) to pensioners with effect from 01.07.2026 representing an increase of 3% over the existing rates of 6

Cyclone Arnab strikes Andhra as warming oceans amplify storm risks

Cyclone Arnab made landfall along the Andhra Pradesh and Yanam coasts in the early hours of Wednesday as a very severe cyclonic storm, with maximum sustained wind speeds of 125–135 kmph and gusts reaching 150 kmph. Its rapid intensification has raised concerns about how warmer oceans, global warmin

Counting matters but which ones?

The first instinct of public policy is to count. Its harder task is to count what counts. We have become remarkably good at measuring the reach of the welfare state vis-à-vis beneficiaries covered, rupees transferred, houses built, connections installed and services delivered. But some of the most

Inching closer to a trade deal with America

The cooperation between India and the United States goes back quite a time. We need to relegate that era to the backburner when Pandit Jawaharlal Nehru visited US in the times of president Dwight Eisenhower and called the American let-off of 10 million dollars in defence aid to Pakistan as a “gun w

Manch vs Musk: Forty people and a foreign billionaire

About forty people walked the roundabout on Teen Murti Marg to the gate of Chanakyapuri police station, a distance you could cover in under a minute, on Friday to protest against Elon Musk’s Starlink. The walk was called by the Swadeshi Jagaran Manch. Nobody joined them on the way, and nobody seeme

Upcoming Conferences



-->

Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter