The International Monetary Fund (IMF) projected 5.4% economic growth for India in 2014-15 and proposed to strengthen the inflation management polices and doing away with supply bottlenecks for better GDP.
The IMF forecast:
- Consumer prices based inflation is expected to remain near double-digits in 2014-15, driven by high food inflation that feeds into wages and core inflation.
- The tight monetary policy would slow the growth recovery.
- For the fiscal year 2013-14, India’s growth will be 4.6% and will pick up to 5.4% in 2014-15 at factor cost. (These projections of India were a conclusion of its annual discussions with India).
As per India’s official estimates, the economy is probably to expand at 4.9% in 2013-14 as against 4.5% in the previous fiscal. The government expects to growth to pick up in the 2014-15 fiscal.