IMF keeps its India economic growth projection for FY22 unchanged at 9.5%

Says India will be the fastest-growing major economy in the world again, scales down 2021-22 retail inflation projection by one percentage point.

In light of worsening Covid dynamics and supply disruptions, the International Monetary Fund (IMF) has kept its projection for India’s economic growth in the current fiscal year at 9.5 percent. However, it has moderately scaled down its forecast for the world economy in 2021 by 10 basis points to 5.9 percent.

The IMF has kept its predictions for India’s gross domestic product (GDP) for the coming fiscal year at 8.5 percent in its World Economic Outlook (WEO), unchanged from July expectations.

The World Economic Outlook headlined ‘Recovery During a Pandemic: Health Concerns, Supply Disruptions, and Price Pressures,’ predicts global economic growth of 4.9 percent in 2022, which is unchanged from previous forecasts.

The IMF also expects India’s consumer price index-based inflation rate to fall to 5.6 percent this fiscal year from 6.2 percent the previous year. It has predicted a further drop to 4.9 percent for the coming fiscal year, down 1.4 percentage points from the prior expectation of 6.3 percent.