In what comes as good news for New Delhi currently tackling the Covid-19 challenge, the International Monetary Fund (IMF) has in its latest edition of the World Economic Outlook raised India’s growth projection to 12.5 per cent for the fiscal year 2022.
“It’s one year since Covid-19 was declared a global pandemic, a year of terrible loss of lives and livelihoods. The rising human toll worldwide and the millions of people that remain unemployed are grim markers of the extreme social and economic strain that the global community still confronts,” the IMF’s outlook stated.
“Yet, even with high uncertainty about the path of the pandemic, a way out of this health and economic crisis is increasingly visible. Adaptation to pandemic life has enabled the global economy to do well despite subdued overall mobility, leading to a stronger-than-anticipated rebound, on average, across regions. Additional fiscal support in some economies — on top of an already unprecedented fiscal response last year and continued monetary accommodation —further uplift the economic outlook,” added the international world body, which promotes international financial stability and monetary cooperation besides facilitating international trade, promoting employment and sustainable economic growth.
This comes just days after Moody’s Analytics said the country’s inflation is at an “uncomfortably high” level.
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Moody’s Analytics last month said the higher fuel prices will keep upward pressure on retail inflation and keep the RBI from offering further rate cuts.
Reserve Bank of India (RBI) Governor Shaktikanta Das had earlier categorically stated the spike in Covid-19 cases is a matter of concern but added it won’t impact the country’s economic revival.
“I would feel that the revival of economic activity, which has happened, should continue unabated going forward. My understanding and our preliminary analysis show that the growth rate next year the 10.5 per cent which we had given would not require a downward revision,” PTI quoted Das saying last month during his address at the Times Network’s India Economic Conclave.