On Tuesday, April 6, the IMF said that the growth rate of India will show a massive increase of 12.5 percent in 2021. The growth will be greater than that of China, which is the only country to have a positive growth rate last year, 2020, during the coronavirus pandemic. The Washington-based worldwide monetary organization, in its yearly World Economic Outlook in front of the yearly Spring meeting with the World Bank, said the growth rate of India is relied upon to develop by 6.9 percent in 2022.
Quite in 2020, India's economy shrunk by a record eight percent, the International Monetary Fund (IMF) said as it projected a great 12.5 percent development rate for the country in 2021. However, China, which was the lone significant economy to have a positive development pace of 2.3 percent in 2020, is relied upon to develop by 8.6 percent in 2021 and 5.6 percent in 2022.
Chief Economist at the IMF, Gita Gopinath, said, “We are now projecting a stronger recovery in 2021 and 2022 for the global economy compared to our previous forecast, with growth projected to be 6 percent in 2021 and 4.4 percent in 2022.” According to reports, the economy had contracted by 3.3 percent at a global level.
In a report, Gita Gopinath said, “Nonetheless, the outlook presents daunting challenges related to divergences in the speed of recovery both across and within countries and the potential for persistent economic damage from the crisis." As per the same report, post the 3.3 percent contraction in the global economy last year, the global economy is expected to grow at 6 percent in 2021, with an average to 4.4 percent in 2022. Gopinath added, “Right now, the emphasis should be on escaping the health crisis by prioritizing health care spending, on vaccinations, treatments, and health care infrastructure. Fiscal support should be well targeted to affected households and firms. Monetary policy should remain accommodative (where inflation is well behaved), while proactively addressing financial stability risks using macroprudential tools."