New Delhi: The International Monetary Fund (IMF) has cut its previous forecast for the growth of the Indian economy. The IMF has estimated that India’s economic growth rate will be 9.5 percent in the financial year 2021-22 (FY22). It has also been said that due to the second wave of coronavirus and slow vaccination campaign, the confidence of the consumers are slowly returning. That is why it has now cut the previous estimate of 12.5 percent by 3 percent. The IMF report states that the second wave of the corona during March-May 2021 has reduced the growth prospects in India. It may take some time to recover from this shock. This cut in the IMF’s estimate is being considered as a big setback for the Indian economy.
Cut in estimates of developing economies like India
The IMF has retained the Global Growth Projection for the year 2021 at 6 percent. At the same time, the IMF has reduced growth projections for emerging markets and developing economies like India, especially for booming Asia. At the same time, the economy of those countries has been looked at with hope, which has better access to Corona Vaccines. According to the report, countries struggling for the corona vaccine have been affected. Let us tell you that just before the second wave of Corona, the IMF had much better expectations from the Indian economy. That is why it had projected India’s economic growth rate to reach 12.5 percent in the financial year 2021.
There will be a slight impact on economies like Britain and Canada
The Monterrey Fund has said in the report that India and Indonesia face the most challenges among the G-20 countries. At the same time, there will be a minor impact of Kovid-19 in the financial year 2021-22 on the rapid vaccination economies like Britain and Canada. However, the IMF has increased India’s growth forecast for the year 2022 by 1.6 percent. The country’s growth rate can increase by 8.5 percent next year. It has also been warned that due to the new variant or wave of Corona, economic reforms may be affected worldwide.
