PTI

Washington, December 23

Projecting a progress charge of 6.8% and 6.1% within the present and the subsequent fiscal respectively, the International Monetary Fund (IMF) on Friday mentioned India is navigating a “very difficult” exterior atmosphere.

Bright spot in gloomy state of affairs

India continues to be the brilliant spot in an in any other case gloomy world financial state of affairs. We are seeing the financial system proceed to develop fairly robustly this fiscal yr. — Choueiri Nada, India Mission Chief, IMF

Choueiri Nada, the IMF’s India Mission Chief, in her digital interplay with reporters reiterated that India continues to be the brilliant spot in an in any other case gloomy world financial state of affairs.

“We are seeing the economy continue to grow pretty robustly this fiscal year,” Nada mentioned because the worldwide monetary physique launched the report of its annual consultations with India.

According to the report, progress is predicted to reasonable, reflecting the much less favorable outlook and tighter monetary situations.

The actual GDP is projected to develop at 6.8% and 6.1% in FY23 and FY24 respectively, mentioned the IMF’s report on India. These projections are significantly better than they’ve been projecting earlier, Nada mentioned. “In fact, in our projections, India is contributing half a per cent to global growth this year and next,” she mentioned.

“But, of course, there are important risks and to have asked about those, we see that the risks are mostly on the downside and mostly coming from external factors. Perhaps the most important risk is sharper than anticipated global slowdown,” she mentioned.

“We are seeing the global economy slowing down next year. But there are downside risks to the speed of the slowdown, and it could be much sharper than what we expected in the report. This will affect India through trade and financial channels,” Nada mentioned.

She mentioned the IMF additionally continues to see the conflict in Ukraine unresolved and will intensify and impact commerce and on costs of commodities. “You’ve solely seen one inflation and so the advances in inflation could possibly be reversed and this is a crucial danger as effectively,” she famous.