An upward revision of India’s GDP growth in the medium term by the International Monetary Fund (IMF) to 7.75% shows that the impressive 8% growth is not too far, a leading industry head said.
The IMF recently called India an elephant that is starting to run and praised several key reforms including the GST, which FICCI President Rashesh Shah said is “encouraging” and that the industry body believes that the 8% GDP growth is easily attainable with the continuation of the reforms measures undertaken by the government.
In a series of tweets, Rashesh Shah said that India, by keeping the pace of reforms through key initiatives such as the Goods and Services Tax (GST), Insolvency and Bankruptcy Code (IBC), labour laws etc, can attain higher growth trajectory. The IMF’s mission chief for India Ranil Salgado recently said that the country is on the track to become world’s fastest-growing emerging economy and that the reforms have started paying off.
India’s GDP growth has been projected at 7.3-7.5% in the fiscal year 2018-19, which will put the country on number 1 rank in terms of economic growth, beating China. India registered a GDP growth of 8.2% in 2015-16, which slowed down to 7.1% in 2016-17 and 6.7% n 2017-18 in the wake of demonetisation and the switch to the GST regime.
However, experts believe that disruption caused due to the structural reforms are over and India’s growth will get benefits of these reforms, which can help a great deal in the formalisation of the economy. While there’s no stopping for India in terms of the GDP growth, the country must watch out for key international risks such as volatility in oil prices and tightening global financial conditions.