IMF surprised over Indian economy slump

The International Monetary Fund (IMF) sees Indian economic growth rebounding to around 7 pc in the next FY, supported by monetary policy stimulus and corporate income tax cuts.

Singapore: We see the Indian economy rebounding from our projected 6.1 pc growth this fiscal year to something like 7 pc in the next fiscal. We see factors that will support growth, including monetary policy stimulus, working their way through the pipeline, Jonathan Ostry, Deputy Director, APAC Department at the IMF, said.

Recent tax cuts, government’s progress in addressing weaknesses in the financial sector and measures to support growth sectors as seen as factors underpinning growth in the near term, Ostry said.