India to grow over twice as fast as world average, says IMF delivering 7.0% and 7.2% forecast

International Monetary Fund has forecast India's ecomy to grow at 7.0% in 2019 and n at 7.2% in 2022, in a projection that vastly outpaces corresponding projection for global growth which stands at 3.2% and 3.5% respectively.

IMF's projection comes just weeks after annual Ecomic Survey projected that India's GDP growth for ongoing fiscal will rise to 7.0% versus 6.8% in fiscal that just ended, meaning that India would remain fastest-growing major ecomy in world and much ahe of China, Washington-based global financial institution said.

RE | Ecomic Survey tabled in Parliament: 7% GDP predicted in FY2019-20, Key macro takeaways from CEA Krishnamurthy Subramanian here

In China, negative effects of escalating tariffs and weakening external demand have ded pressure to an ecomy alrey in midst of a structural slowdown and needed regulatory strengning to rein in high dependence on debt, it said.

With policy stimulus expected to support activity in face of verse external shock, growth is forecast at 6.2 percent in 2019 and 6.0 percent in 2020 -- 0.1 percent point lower each year relative to April World Ecomic Outlook (WEO) projection, IMF said.

Releasing IMF's April World Ecomic Outlook (WEO) report in Chile's capital Santiago, IMF's Indian-origin Chief Ecomist Gita Gopinath said IMF is revising downward its projection for global growth to 3.2 percent in 2019 and 3.5 percent in 2020.

"While this is a modest revision of 0.1 percent points for both years relative to our projections in April, it comes on top of previous significant downward revisions. revision for 2019 reflects negative surprises for growth in emerging market and developing ecomies that offset positive surprises in some vanced ecomies," she said.

ting that growth is projected to improve between 2019 and 2020, she said, however, close to 70 percent of increase relies on an improvement in growth performance in stressed emerging market and developing ecomies and is refore subject to high uncertainty.

Global growth, Gopinath said, is sluggish and precarious, but it does t have to be this way because some of this is self-inflicted.

Dynamism in global ecomy is being weighed down by prolonged policy uncertainty as tre tensions remain heightened despite recent US-China tre truce, techlogy tensions have erupted threatening global techlogy supply chains, and prospects of a -deal Brexit have increased, she said.

Gopinath said a major downside risk to outlook remains an escalation of tre and techlogy tensions that can significantly disrupt global supply chains.

combined effect of tariffs imposed last year and potential tariffs envisd in May between United States and China could reduce level of global GDP in 2020 by 0.5 percent, she said.

With global growth subdued and downside risks dominating outlook, global ecomy remains at a delicate juncture, she said.

It is refore essential that tariffs are t used to target bilateral tre balances or as a general-purpose tool to tackle international disagreements, Gopinath said.

"To help resolve conflicts, rules-based multilateral tring system should be strengned and modernised to encompass areas such as digital services, subsidies and techlogy transfer," IMF's Chief Ecomist ded.