IMF forecasts 8 percent growth for India

March 17th, 2010 - 9:22 pm ICT by IANS  

Washington, March 17 (IANS) In an upbeat assessment of India’s growth outlook, the International Monetary Fund (IMF) forecast India’s economic growth to accelerate to 8 percent in 2010-11 from 6.75 percent in 2009-10.
However, IMF in its latest Article IV consultation paper issued Wednesday also cautioned India on the need to rein in high inflation and rising fiscal deficit.

“With India’s long-term prospects remaining strong and private sector balance sheets sound, we expect growth to be back at potential in 2010-11 even if advance economies grow below trend,” it said.

India’s economy is recovering well, with conditions now in place for a gradual tightening of monetary policy, the IMF said while indicating there is room for the rupee to rise without compromising a recovery.

“India’s economy is rebounding strongly ahead of most countries in the world, bringing policy trade-offs to a head earlier than in other countries,” the IMF said.

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