Published 21:15 IST, January 26th 2021

IMF projects Indian economy to grow by 11.5% in 2021, surpassing China's 8.1% growth

In heartening news for pandemic-hit nation, the international monetary Fund (IMF) on Tuesday projected a 11.5% growth for India in 2021 - fastest growing nation

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In heartening news for pandemic-hit nation, international monetary Fund (IMF) on Tuesday projected a 11.5% growth for India in 2021 - making it only major ecomy of world to register double-digit growth this year amidst coronavirus pandemic. China is next with 8.1 per cent growth in 2021 followed by Spain (5.9 per cent) and France (5.5 per cent). This development comes days before Union Finance Minister Nirmala Sitaraman is set to present Union Budget for FY-21-22.

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IMF projects 11.5% growth for India

IMF has also projected that India’s ecomy is projected to grow by 6.8 per cent in 2022 and that of China by 5.6 per cent, with India regaining its ag of fastest developing ecomies of world. IMF Managing Director Kristalina Georgieva said that she is impressed by appetite for structural reforms that India is retaining. United Nations, on or hand, projected India's ecomy to grow at 7.3 per cent in 2021, even as it is estimated to contract by 9.6 per cent in 2020.

“What we see is that transition, combined with policy support, seems to have worked well. Why? Because if you look at mobility indicators, we are almost where we were before COVID in India, meaning that ecomic activities have been revitalized quite significantly,” said IMF Managing Director Kristalina Georgieva adding, "“Emerging markets on aver have provided six per cent of GDP. In India this is slightly above that. Good for India is that re is still to do more".

India's GDP to contract by 7.7% for FY 20-21 estimates Centre; hit by year-long pandemic

India's GDP to contract by 7.7% in FY 20-21

Earlier on 7 January, Ministry of Statistics & Programme Implementation estimated that India's GDP will be -7.7% for FY 20-21 - lowest till date. As per National Council for Applied Ecomic Research (NCAER), India is set to see a marginally positive 0.1% growth in third quarter. Currently India has entered recession witnessing two quarters of contaction : -23% and -7.5% respectively.

Marking its worst contraction in history, India's GDP growth for first quarter of FY 21 stood at -23.9% as per data released by National Statistical Office (NSO) on August 31. This contraction came after overall FY 19-20 GDP growth stood at 4.2%, hitting an 11-year low. As per market reports, core sectors' growth stood at: Industries at -381%, Services at -20.6%, Manufacturing at -39.3 %, Trade, Hotels at -47%. Agriculture has been only sector to see growth clocking a 3.4% increase, due to rural sector remaining mostly free from lockdown. Subsequently, in second quarter of FY 21, India's GDP contracted at -7.5% - plunging nation into recession with two successive quarters of contraction.