New Delhi: The International Monetary Fund (IMF) in an annual consultation report has said that the Indian economy has emerged as a “star performer” and is projected to contribute more than 16 percent of the global growth. The IMF has also projected that the Indian economy will grow at 6.3% during the current fiscal.
“Aided by prudent macroeconomic policies, India is on track to be one of the fastest-growing major economies in the world this year”, the IMF noted in a release. At the same time, the UN financial agency has also commended India’s economic resilience and growth amid “global challenges” such as the ongoing conflicts in the Middle East and Europe.
The IMF observed that there is a very strong push by the Indian government to invest in infrastructure and develop the logistics that are needed for a solid basis for growth.
“The government has done several structural reforms, the flagship one being the digitalisation, which has been building up over many years and has put India on a strong platform for increased productivity and growth in the future,” it said, adding that the country has potential for even higher growth, with greater contributions from labour and human capital, if comprehensive reforms are implemented.
The IMF also praised the Reserve Bank of India’s proactive monetary policy and “strong commitment to price stability.” The current neutral monetary policy stance, anchored on a data-dependent approach, is appropriate and should gradually bring inflation back to target, it said.
The RBI's Monetary Policy Committee has raised the policy repo rate by 250 basis points in 2022-23 to 6.5 percent to bring down high inflation following a surge in global commodity prices.
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