Indian Finance Minister Nirmala Sitharaman is on a visit to America these days. There he also held meetings with IMF and World Bank officials. Meanwhile, India is being praised a lot. While IMF MD has said that the country’s high growth rate is good news for the world, on the other hand, another senior official has said that India is fully capable of dealing with the economic situation arising out of the Ukraine crisis.
While praising India, IMF MD Kristalina Georgieva has said that India’s high growth rate is good news not only for India but for the whole world. He said that India has proved itself in times of crisis and has emerged as an example for other countries. Georgieva said that even if the IMF has slashed India’s growth forecast to 0.8 percent for 2022, it will continue to be the fastest-growing economy in the world. Georgieva said that India is playing an important role at the international level.
Significantly, the IMF has reduced India’s growth forecast to 8.2 percent in 2022. India’s economic growth rate in 2021 was 8.9 percent. Even after a slight decline, India’s growth rate estimate is much higher than China and America. The growth estimate for China is 4.4 percent, that is, India’s economic growth rate will be twice that of China. China’s growth rate was 8.1 percent in 2021. Apart from this, the growth rate of America has been projected to be 3.7 percent in 2022 and 2.3 percent in 2023. The economic growth rate of the US in the year 2021 was 5.7 percent. At the same time, the IMF has reduced the global growth forecast to 3.6 percent, which is much lower than the 6.1 percent in 2021.
A top official of the International Monetary Fund has said that India’s economy has strengthened due to the successful macroeconomic management of the Kovid-19 epidemic. This puts the country in a better position to face the economic fallout of the current Ukrainian crisis. IMF’s head of mission for India Nada Chouri said that India represents about seven percent of the total world economy in terms of purchasing power parity (PPP) and is one of the countries that is growing rapidly. He said that India’s growth is working to lift the global economy.
The reduction in India’s growth forecast by the IMF is largely due to the Russia-Ukraine war that has been going on for more than one and a half months. This has certainly led to a jump in oil and other commodity prices, which is expected to remain for a long period of time. He said that external demand has also been affected, and especially in Europe, the global economic slowdown due to the war in Ukraine is clearly visible.