INVC NEWS
Washington : The International Monetary Fund (IMF), while clarifying on the estimate of Indian economy growing at the rate of 8 percent by 2047, said, this figure is not our official figure. Rather, it is the personal opinion of IMF Executive Director and India’s representative Krishnamurthy Subramaniam. IMF spokeswoman Julie Kozak said Subramanian’s views were in his role as India’s representative to the IMF. Subramaniam is a member of the executive board, an IMF spokesperson said. The board is composed of executive directors, who are representatives of the countries. They are not part of the IMF staff. Their work is different from that of IMF.
She said that till January our estimate for India’s growth was 6.5 percent. Forecasts will be presented again in a few weeks. India’s executive director at the IMF also said that reforms are needed in the land, labour, capital and logistics sectors. Reforms in the manufacturing sector are necessary. Along with this, we will also have to focus on reforms in the banking sector to provide loans to the manufacturing sector.
Need for improvement in these areas: Emphasis will be given on employment generation, consumption will increase: Subramaniam said, historically since 1991, India’s average economic growth rate has been a little more than 7 percent. India needs to strengthen its economy as about 58 percent of the country’s GDP comes from domestic consumption. So, you know…we have the capability. If we can create enough jobs by encouraging the manufacturing sector, it will lead to much higher consumption.
This is the matter: Subramaniam had said that the Indian economy can grow at the rate of 8 percent till 2047. If this pace continues, India can become a 55 trillion dollar economy by this period. However, this is possible only if the country can double down on the good policies implemented in the last 10 years and accelerate reforms. Subramaniam said the 8 per cent growth rate is ambitious as India has not been able to grow at this pace consistently in the past, but it is achievable.
Economy’s pace better than expected: The Indian economy grew at a better-than-expected rate of 8.4 percent in the last three months of 2023. This is the fastest pace of GDP growth in the last one and a half years.
