Recovery in progress

The global economy is going to pick-up in the year and so would India's GDP growth, showed the latest World Economic Outlook report by the International Monetary Fund (IMF) on Tuesday.

According to the multilateral institution, growth in India picked up after a favourable monsoon season and higher export growth, and is expected to firm further on stronger structural policies supporting investment. Though the IMF's latest projection for India's GDP growth at 4.6 per cent this year is lower than World Bank's estimate of 4.8 per cent and Indian government's estimates of 5 per cent, these are better than IMF's October 2013 outlook.

On the contrary, World Bank's January projections for India were lower than its June estimates, while the agency had raised its global growth projections. IMF in its latest report also said the global activity is expected to improve further in 2014-15, largely on account of recovery in the advanced economies, but downward risks remained in some economies.

The report also suggested that in many emerging economies, domestic weaknesses persist, but stronger external demand from advanced economies will lift growth.