The International Monetary Fund’s (IMF) stated today that the Indian economy is next to only China and the US. According to Ranil Salgado, IMS’s mission chief for India, India now contributes, in purchasing power parity (PPP) measures, 15 per cent of the growth in the global economy, which is substantial.
He predicts that India is a source of growth for the global economy for the next few decades and it could be what China was for the world economy. With regard to total global growth in PPP terms, it’s 15 per cent of total global growth. Though trading is not as high as China trade levels, he said that IMF views India as a “long run source of global growth”.
Although there are short term issues, the IMF views that as a long-term major gain for India by implementing a national GST. Insolvency and the bankruptcy code is the other big achievement, he said. “We are seeing certain positive steps there and we hope that can continue,” he said.
In its report, the IMF Executive Board has forecast 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.