We have doubts on IMF projections: BJP's Gopal Krishna Agarwal

After the International Monetary Fund (IMF) slashed India's growth rate to 4.8 per cent for 2019, which is expected to rise to 5.8 per cent in 2020, BJP leader Gopal Krishna Agarwal said that he has doubts on IMF projections.

"We have doubts on IMF projections, whether they have taken into considerations the impact of Narendra Modi government initiatives like NIP, credit line for MSME and NBFC and mega exercise on Budget, IBC and GST reforms. GDP growth rate has bottomed out and we will see significant growth ahead," Agarwal tweeted.

In another post, he added, India is affected by global growth slowdown and not the causes as IMF narrating. It is protectionist policies followed by counties like the US and Europe with regards to manufacturing and Agri. Significant are US/China trade war, US Iran conflict and lopsided FTAs signed during UPA regime."

While talking to ANI, Agarwal said, "What IMF and World Bank does is, they take the past performance figures and then project it. They are not taking into account what the initiatives of the government are taking place whether it is in the form of Budget proposals or several initiatives with regard to NBFC crisis, liquidity issues and financial resolution mechanism, which India is putting through IBC and GST reforms."

He added, "Already the GDP growth rate has bottomed out and in recent future, we will have a very good growth rate and that will be propelled further."

In October, the IMF had estimated the growth rate at 6.1 per cent.

"IMF's World Economic Outlook report estimates India's growth at 4.8 per cent in 2019," said the global money lender in a statement.

It projected the country's growth to improve to 5.8 per cent in 2020 and 6.5 per cent in 2021. The IMF attributed the slash in estimate to the slowdown in demand in the domestic market and stress in the nonbank financial sector.

"The growth markdown largely reflects a downward revision to India's projection, where domestic demand has slowed more sharply than expected amid stress in the nonbank financial sector and a decline in credit growth," said the IMF.

It further said: "The downward revision primarily reflects negative surprises to economic activity in a few emerging market economies, notably India, which led to a reassessment of growth prospects over the next two years.