IMF says global growth led by Indian growth


Delhi, Aug 9 (Agency): International Monitory Fund (IMF) has stated that India is a source of growth for the global economy. IMF has also said that Indian growth will be important for the world for the next few decades and it could be what China was for the world economy some years ago. 

"India now contributes, in purchasing power parity measures, 15 per cent of the growth in the global economy, which is substantial," Ranil Salgado, International Monetary Fund's mission chief for India, told PTI. This is next to only China and the US, he said."But of total global growth in Purchasing power parity (PPP) terms, it's 15 per cent of total global growth. Trading is not as high as China trade levels," Salgado said as the IMF Executive Board released the report of its annual consultations with India.

He said the IMF views India as a "long run source of global growth". 

“India has three decades before it hits the point where the working age population starts to decline. So that's a long time. This is India's window of opportunity in Asia. It's somewhat only a few other Asian countries have this," he said. "For the (next) three decades, it (India) is a source of growth for the global economy and could be even longer. But three decades where India can be almost what China was for the world economy for a while," Salgado said. 

In its report, the IMF Executive Board has forecasted India's growth to rise to 7.3 per cent in FY2018/19 and 7.5 per cent in FY2019/20, on strengthening investment and robust private consumption.Although there are short term issues, the IMF views that as a long-term major gain for India by implementing a national GST. “It's something that's difficult to do. Other countries have struggled. In India it's much more complex because you have a 29 states and union territories and you need agreement. I think that that was a great achievement," Salgado said. The IMF has also said that Insolvency and the bankruptcy code is the other big achievement of India.

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