India’s growth projection raised to 5.4% for '09

Also Read   Related Stories News Now - IMF raises India 2009 growth forecast to 5.4% - Forex reserve up $932 mn - IMF to authorise $150 bn in bond debut - Kosovo becomes 186 member of IMF - IEA cuts oil outlook on economic slump - Forex reserves up $8 million   Also Read   Related Stories News Now - Sensex makes remarkable recovery, regains 17K - S C Kalia takes over as Union Bank ED - PNB may acquire majority stake in Kazakh bank - Maoist hindering land acquisition for Tata steel project: Raman - Koda says he will report to ED only after Jharkhand polls More

The International Monetary Fund (IMF) has revised upwards India’s growth projection by 0.9 percentage point in calendar 2009 and 2010 because of positive impact from fiscal and monetary stimulus packages.

The multilateral financial institution now expects Asia’s third largest economy to grow at 5.4 per cent in calendar 2009, compared with 4.5 per cent projected in April this year.

In 2010, the Indian economy is expected to grow at a much faster rate of 6.5 per cent.

China’s growth projection was also revised upwards by 1 percentage point in calendar 2009 and 2010. India’s northern neighbour is expected to register 8.5 per cent growth in 2010. “Growth projections in emerging Asia have been revised upward to 5.5 per cent in 2009 and 7 per cent in 2010. The upgrade owes to improved prospects in China and India, in part reflecting substantial macroeconomic stimulus; and a faster than-expected turnaround in capital flows,” said IMF in its latest World Economic Outlook.

However, the outlook warned that further acceleration in growth would depend on recovery in advanced economies. “The recent acceleration in growth is likely to peter out unless there is a recovery in advanced economies,” IMF said.

Recently, the Economic survey for 2008-09 projected Indian economy to expand by 7 per cent with a range of 0.75 percentage point on either side.

The higher growth is dependent on the US economy recovering by September this year. The IMF projects US economy to contract by 2.6 per cent in 2009 before recovering to 0.8 per cent in next calendar.

“In the US, high-frequency indicators point to a diminishing rate of deterioration, including in the labour and housing markets. Industrial production may be close to bottoming out; the inventory cycle is turning; and business and consumer confidence has improved,” the report said.

Thus, the IMF expects the world’s largest economy to stabilise in the second half of calendar 2009, followed by “gradual recovery” in the following year.

Other Stories      - Sensex makes remarkable recovery, regains 17K - S C Kalia takes over as Union Bank ED - PNB may acquire majority stake in Kazakh bank - Maoist hindering land acquisition for Tata steel project: Raman - Koda says he will report to ED only after Jharkhand polls More

Tags : mixed bag | IMF |   Read Business news in  Advertisements   Get financial advisory and solutions for your projects   Holidays starting at a delightful EMI of Rs 3481   Switch on and say hello to Monday morning !   Your dream home can now be a reality.   Visit Fortis for a preventive health check-up & get a 20% discount.   Follow the ups and downs of your investments. Try our new Portfolio Tracker   Kolkata Dock \ Freight contract for the British Gurkhas Nepal   Find how Midsize Businesses use ERP to gain competitive advantage   Trading in Forex is now as easy as 1-2-3   Discover an economical and cost effective way to market your products and services   Giftwithlove.com: Same day delivery of Flowers and Cakes to India   Download the E-book on the Future of Business Intelligence   Learn Best Practices for improving customer satisfaction   Know your customers better... download the free e-book on CRM