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India's growth remains quite robust into the future, says IMF official

For India, the main factor is the rise in oil prices

Press Trust of India  |  Washington 

International Monetary Fund
Visitors are silhouetted against the logo of the International Monetary Fund at the main venue for the IMF and World Bank annual meeting in Tokyo. (Photo: Reuters)

India's growth remains "quite robust" into the future, the has said despite slightly downgrading the country's growth projection for 2018-19 due to high and a tight monetary policy regime.

The (IMF) on Monday forecast a growth rate of 7.3 per cent in 2018 and 7.5 per cent in 2019 for India, which was down by 0.1 per cent and 0.3 per cent, respectively, than its April projections.

"India's growth remains quite robust into the future. It is down but it is growing very strongly," Maurice Obstfeld, Economic Counsellor and Director of the Research Department of the (IMF), told reporters at a news conference.

"For India, the main factor is the rise in oil prices, and India is an oil importer. But also, the general tightening in global financial conditions is playing a role in affecting India's growth. Those are the main factors behind the downgrade," Obstfeld said.

According to Gian Maria Milesi-Ferretti, Deputy Director, Research Department, with tighter global financial conditions and higher bringing rising inflationary pressures, the monetary policy has tightened.

"It is a bit tighter than under our forecast in April. That adds to oil and tighter global financial conditions in taking a little bit off growth for next year," he said.

First Published: Wed, July 18 2018. 12:28 IST