The IMF chief Kristalina Georgieva's announcements on Friday at the World Economic Forum (WEF) 2020 at Davos have positive signals for the world economy in general and India for particular.
She said growth slowdown in India appears to be temporary and that she expects the momentum to improve going ahead. The world appears a better place in January 2020 compared to what it was when IMF announced its World Economic Outlook in October 2019.
Citing what she called “negative surprises” in few emerging market economies, especially India, the IMF also revised downwards its forecast for India to 4.8 per cent for 2019-20. However, her infusing confidence that India will show momentum to improve in coming phase.
Here in India, at a time when there are widespread concerns about economy and all eyes are on the Union Budget to be tabled by Finance Minister Nirmala Sitharaman on 1 February, Union Minister Prakash Javadekar, giving a ray of hope, has said the government will unveil its “plan of action” to boost the economy in the Budget.
Responding to a question about the downward revision of India's growth rate by the International Monetary Fund (IMF), he said the economy is on the path of “revival” and nobody should have a pessimistic view about it.
“From the Union Budget, you will get government's plan of action. Our fundamentals are very strong. Therefore, nobody should create a pessimistic view about Indian economy,” the Information and Broadcasting Minister said at a briefing after the Union Cabinet meeting.
Asserting that the economy was on the path of “revival”, he said there are ups and downs in world economy, and it has reflection on economy of countries. The IMF had on Monday lowered growth estimate for India to 4.8 per cent for 2019, citing stress in the non-bank financial sector and weak rural income growth as the major factors for the downward revision.
While providing an update on the global economy ahead of the start of the World Economic Forum (WEF) annual summit, the IMF cut its India growth forecast. India-born IMF Chief Economist Gita Gopinath had said growth in India slowed sharply owing to stress in the non-banking financial sectors and weak rural income growth.
Opposition parties have been attacking the government over the economic slowdown and its policies. Now the whole country is eagerly waiting to know the government's action plan in the Budget.
