IMF revises India's FY22 GDP growth forecast to 12.5%

by Nidhi Bhati

The International Monetary Fund (IMF) has revised India’s GDP growth projection for 2021-22 upwards to 12.5 per cent from 11.5 per cent estimated in January 2021. GDP growth for 2022-23 is estimated at 6.9 per cent. However, the IMF cautioned that the forecast has not factored in the downside risks arising from the country’s ongoing second wave of Covid-19. As per IMF’s Chief Economist Gita Gopinath, the one percentage point increase in India’s growth forecast for 2021-22 came in the background of encouraging signs from high-frequency indicators. There is evidence of normalisation of economic activities in India, she added.