IMF retains India GDP growth projection for 2021-22 at 9.5%

In its World Economic Outlook (WEO), the International Monetary Fund (IMF) has maintained India’s real GDP growth forecast for 2021-22 at 9.5 per cent, unchanged from its July projections. The agency has also retained its projection for 2022-23 at 8.5 per cent.

The IMF has also projected India’s consumer price index-based (CPI) inflation rate to decline to 5.6 per cent for 2021-22 from 6.2 per cent in 2020-21. For 2022-23, it has forecast a further decline to 4.9 per cent, 1.4 percentage points lower than the earlier projection of 6.3 per cent. It further stated that the current account balance of India will witness a deficit of one per cent of GDP this financial year, as compared to a surplus of 0.9 per cent last year. The deficit will further widen to 1.4 per cent next financial year.