Big boost for Narendra Modi on economy; India No. 1, check these 10 points
In a big boost for PM Narendra Modi, it has been revealed by IMF's Asia and Pacific Regional Economic Outlook report today that India will be the fastest growing economy in the world in 2018. With Karnataka elections looming and 2019 general elections nearing too, the news on the economy will definitely boost the prospects of the ruling dispensation. Check out these 5 power points that made India No. 1:
The International Monetary Fund (IMF) said that India will be the fastest growing major economy in 2018.
Indian economic growth rate of 7.4 per cent in 2018 will rise to 7.8 per cent in 2019 with medium-term prospects remaining positive, said IMF.
IMF said that India was recovering from the effects of demonetisation and the introduction of the Goods and Services Tax.
IMF added that 'the recovery is expected to be underpinned by a rebound from transitory shocks as well as robust private consumption.'
IMF report said medium-term consumer price index inflation is forecast to remain within but closer to the upper bound of the Reserve Bank of India`s inflation-targeting band of four per cent with a plus or minus two per cent change.
Report said the consumer price increase in 2017 was 3.6 per cent and projected it to be five per cent in 2018 and 2019.
Significantly, it warned, "given increased inflation pressure, monetary policy should maintain a tightening bias."
On CAD, the report said, "The current account deficit in fiscal year 2017-18 is expected to widen somewhat but should remain modest, financed by robust FDI inflows."
The report also said that US President Donald Trump`s fiscal stimulus is expected to support Asia`s exports and investment.
IMF says Asia is the fastest-growing region in the world and the main engine of the world's economy. The Asian economic growth rate is expected to be 5.6 per cent for 2018 and 2019.