IMF Cuts India's Growth Forecast for 2015, Urges Structural Reforms
October 08, 2015: The growth rate of India will not get affected by the recent crisis happened in the global economy. The International Monetary Fund has stated that GDP Rate of India will keep on moving irrespective of a slowdown in the world economy. The government needs to speed up the reforms in the structure of different sectors including mining, energy, power, etc.
India’s growth was expected to be 7.5 per cent, but IMF has lowered this forecast to 7.3 per cent.
"India is still a bright spot, but that's partly because the other emerging markets are not so bright," Thomas Richardson, the IMF's resident representative in India, told Reuters as the Fund released its latest World Economic Outlook.
In the monetary policy review, RBI has cut the interest rate by 50 basis points. This rate cut was bigger than expected. The current repo rate is the lowest ever in 4.5 years that is 6.75 per cent. It has provided a momentum to the speed of Indian economy. India has successfully brought down the consumer price index and inflation.
India is a hot spot for the foreign investors. There is a big need for reforms in tax and investment policies in India. It will provide ease to the investors who want to bring opportunities in India.
Mr. Arun Jaitley, the Finance Minister, has set an aim to bring down the fiscal deficit to 3.9 percent of GDP before the ending of the current fiscal year. India should apply new laws and ways to recover the bad loans in the banking sector.