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India may rise upto 4.4%: IMF
Jan 22, 2014

According to the IMF’s latest World Economic Outlook growth in India picked up after a favourable monsoon season and a higher export growth and is expected to firm further on strong structural policies supporting investment.

The International Monetary Fund (IMF) has bumped up India's growth forecast for the current fiscal by more than half a percentage point to 4.4% in 2013-14 in terms of market prices against the 3.8 per cent estimated initially.

In terms of factor cost, which is the more widely used method of computing national income in India, growth is pegged at 4.6 per cent, revised upward from 4.25 per cent estimated earlier. 

IMF sees growth rising to 5.4 per cent in 2014-15 and 6.4 per cent in the year after, which is lower than the respective 6.2 per cent and 7.1 per cent recovery forecast by its Bretton Woods twin, the World Bank.

The estimate for 2014-15 is marginally higher than the October forecast of 5 per cent. 

The basic reason behind the stronger recovery is that the obstacles to the recovery are progressively being loosened. The drag from fiscal consolidation is diminishing. The financial system is slowly healing. Uncertainty is decreasing 

 


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