The sound effective monetary policies of the Modi government has started earning praises from all over the world. And now its the turn of the The International Monetary Fund (IMF) that has praised the reforms of the Modi government and has also said that India is the fastest growing economy.
“In India, important reforms have been implemented in recent years, including the Goods and Services Tax, the inflation-targeting framework, the Insolvency and Bankruptcy Code, and steps to liberalize foreign investment and make it easier to do business” said the IMF in its World Economic Outlook (WEO) ahead of IMF annual meeting in Bali.
The IMF report reduced India’s growth projection made in July for next year by 0.1 per cent to 7.4 per cent citing external factors like “the recent increase in oil prices and the tightening of global financial conditions”. Still this rate is the highest in the world for world`s fastest growth rate for major economies. In what’s called as another opportunity to boast about India’s economy, the IMF has reduced the growth forecast of China, more than India.
The IMF has not just forecasted the growth for 2019, but has also said that India will see growth in the upcoming years saying “structural reforms and a still-favourable demographic dividend”. The report added “India`s medium-term growth prospects remain strong at 7.75 per cent, benefiting from ongoing structural reform”.
It should be noted the report clearly said that the global economy is in great trouble due to several economic policies of the developing countries and even due to the US President Donald Trump’s economic policies. Yet, the Indian economy is rock solid and the credit goes to the Modi government’s solid economic reforms.
Not just praising PM Modi’s economic reforms, the IMF gave few tips so that India would remain unaffected due to the turmoils in the world economy. IMF said “reform priorities include reviving bank credit and enhancing the efficiency of credit provision by accelerating the cleanup of bank and corporate balance sheets and improving the governance of public sector banks”.
IMF added “A high interest burden and risks from rising yields also require continued focus on debt reduction to establish policy credibility and build buffers. These efforts should be supported by further reductions in subsidies and enhanced compliance with the Goods and Services Tax”.
Still, the Modi haters mock that how could a “Chaiwala” handle India’s economy successfully?
Source: Zee News