India Is Projected To Contribute Over 16% To Global Growth: IMF

The International Monetary Fund has called India a star performer growing at a robust rate due to prudent macroeconomic policies and economic reforms in key sectors like digitisation and infrastructure, as it believes India is projected to contribute more than 16 per cent of the global growth. As per IMF’s annual Article IV consultation with India, IMF sees India’s economy grow at 6.3% in current fiscal year IMF report also says that India is on track to be one of the fastest-growing major economies in the world. The country's digital public infrastructure and a strong government infrastructure program will continue to sustain growth, the IMF said. India rebounded strongly from the pandemic, employment has surpassed pre-pandemic levels.  IMF has welcomed India's near-term fiscal policy, which focuses on accelerating capital spending while tightening the fiscal stance. The Indian government is looking to lower its fiscal deficit to 5.9 percent of GDP in the current financial year, with the Centre confident about meeting the target. In the medium-term, the fiscal deficit is expected to be lowered to 4.5 percent of GDP by 2025-26.