United Nations sources stated that the International Monetary Fund (IMF) acknowledged the economic reforms carried out under Prime Minister Narendra Modi and projected India to be the world's fastest growing major economy this year and next. Meanwhile the World Economic Outlook (WEO) released ahead of the IMF annual meeting in Bali said, "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."
Furthermore after citing external factors "the recent increase in oil prices and the tightening of global financial conditions" and it cut India's growth projection made in July for next year by 0.1% to 7.4% which would still be the world's fastest growth rate for major economies. Meanwhile it kept the 7.3% growth projection for this year made in July.
Moreover when compared to the projections made in
April, the current one for 2018 is lower by 0.1% and for 2019 by 0.4%.
Accordingly WEO said up from India's growth rate of 6.7% in 2016, the growth
projections for this year and the next reflect "a rebound from transitory
shocks" of demonetization and the implementation of the national Goods and
Services Tax" and "strengthening investment and robust private
consumption".
