You are here: Home » Economic Revival » Other » News
Business Standard

Evidence of normalisation of economic activity in India, says Gita Gopinath

In its annual World Economic Outlook, the Washington-based global financial institution said that the Indian economy is expected to grow by 6.9% in 2022

IMF | IMF Report on Indian economy | IMF on India

Press Trust of India  |  Washington 


There is evidence of normalisation of economic activities in India, Chief Economist Gita Gopinath has said ahead of the annual spring meeting of the International Monetary Fund and the World Bank here.

On Tuesday, the projected an impressive 12.5 per cent growth rate for India in 2021, stronger than that of China, the only major economy to have a positive growth rate last year during the Covid-19 pandemic.

"The evidence we were getting in the last couple of months in terms of the normalisation of economic activity,"

Gopinath said ahead of the annual spring meeting of the and the World Bank here.

In its annual World Economic Outlook, the Washington-based global financial institution said that the is expected to grow by 6.9 per cent in 2022.

In 2020, India's economy contracted by a record eight per cent.

However, compared to the previous projections, the change in 2021 forecast is pretty small, Gopinath noted.

"In the case of India, we have a pretty small change. It's 1 percentage increase for growth for 2021. This came in with high frequency," she said in response to a question.

Malhar Nabar, Division Chief of the research department at the IMF, told reporters that the current forecast that the IMF has for India already takes a fairly conservative view on the sequential growth for the for this year.

"But it's true that with this very worrying uptick in cases that poses very severe downside risks to the growth outlook for the economy," Nabar said.

The global economy shrank by 4.3 per cent last year, over two-and-a-half times more than during the global financial crisis of 2009.

According to Johns Hopkins University's coronavirus tracker, the COVID-19 has so far infected 131,707,267 people and killed 2,859,868 people across the world since it first broke out in central China's Wuhan city in 2019.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Wed, April 07 2021. 08:14 IST