IMF projection for India’s GDP growth highest in G-20, says RBI Governor Shaktikanta Das

IMF projection for India’s GDP growth highest in G-20, says RBI Governor Shaktikanta Das

Reserve Bank of India (RBI) Governor Shaktikanta Das today said India is expected to post a sharp turnaround in the financial year 2021-22. Quoting projections made by the International Monetary Fund (IMF), Shaktikanta Das said the IMF's projection of 1.9 percent GDP growth for India is the highest among G-20 nations.

Das said on April 14, the IMF released its global growth projections and said in 2020, the world economy is expected to plunge into the worst recession since the Great Depression. "IMF has named it the 'Great Lockdown' and has estimated a loss of $9 trillion to the global economy. This amount is greater than the economies of Japan and Germany combined," he said.

The RBI Governor said, "India is among the handful of countries which is projected to somehow cling on to a positive growth rate at 1.9 percent. In fact, this is the highest GDP growth rate among the G-20economies as estimated by the IMF."

He said the RBI is regularly monitoring the situation that is developing out of the COVID-19 outbreak and from time-to-time is making the announcement.

However, speaking about the impact of the COVID-19 pandemic on the Indian economy, RBI Governor Shaktikanta Das said since March 27, the macroeconomic and financial landscape have "deteriorated precipitously" in some areas but might still swim through in some others.

The contraction in exports in March at 34.6 percent is much more severe than the global financial crisis of 2008-09, Das said.

He added that the production of automobiles and their sales has declined sharply in March and that the country's electricity demand to have fallen sharply.