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IMF: India’s Growth at 7%, Urges Reforms UPSC NOTE

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  Latest World Economic Outlook by the IMF The IMF projects global growth at 3.2% in 2024 , similar to 2023, with a recession avoided. The f...

 Latest World Economic Outlook by the IMF

  • The IMF projects global growth at 3.2% in 2024, similar to 2023, with a recession avoided.

  • The fight against inflation is "almost" won, with moderating inflation rates allowing for more supportive monetary policies.

  • Growth expectations have been downgraded for some regions due to conflicts and unrest, while emerging Asia (especially China and India) shows brighter prospects.

India's GDP Forecast

  • India's GDP growth is maintained at 7% for 2024-25, then 6.5% the following year.

  • The forecast reflects a slowdown due to the exhaustion of pent-up demand from the pandemic, impacting urban consumption.

  • Recent data shows GDP growth at 6.8% for Q2, slightly up from 6.7% in Q1.

Need for Domestic Reforms

  • India's economic future relies more on internal growth, with weaker exports and investment flows being concerning.

  • The IMF stresses the need for ambitious domestic reforms to boost competition and integration, enhance private investment, and reduce trade barriers.

  • Much of the reform work is needed at the State level, but central policymakers also need to push for a more open economy.

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Learnerz IAS | Concept oriented UPSC Classes in Malayalam: IMF: India’s Growth at 7%, Urges Reforms UPSC NOTE
IMF: India’s Growth at 7%, Urges Reforms UPSC NOTE
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