Statsguru: IMF expects India to grow at 7.3% in FY19, 7.5% in FY20

Separately, the IMF has projected the inflation rate to rise to 5.2% in FY19

After dipping to a low of 6.7 per cent in FY18, India’s economic growth is expected to rebound to 7.3 per cent in FY19, notes the International Monetary Fund (IMF), in its review of the Indian economy under Article IV. As seen in Chart 1, the IMF now expects India to grow at 7.5 per cent in FY20.

Investments are expected to witness a sharp turnaround, with the IMF expecting gross investments to reach 32.2 per cent of GDP in FY19, up from 30.6 per cent in FY18 (Chart 2).

The Fund estimates that India’s potential GDP stood at 7.3