IMF suggests 'big' advice to India on the global economic slowdown
Tuesday - December 24, 2019 4:02 pm ,
Category : WTN SPECIAL
Solid measures needed to tackle global economic slowdown - IMF
IMF expects the Indian economy to recover from the economic slowdown in the next financial year
DEC 24 (WTN) - The Indian economy is the 6th largest economy in the world based on GDP. As far as Asia is concerned, the Indian economy with the US $ 2.9 trillion is the third-largest economy in Asia after China and Japan. India has economic relations with many countries of the world and for this reason; the fluctuations in the Indian economy have an impact on the world economy. As you know, the whole world is facing a global economic slowdown at this time. According to the IMF (International Monetary Fund), 90 per cent of the world's economies, including India, have been affected in some way by the global economic slowdown.
But the economic slowdown has had a huge impact on the fast-growing economies like India and Brazilian. The Indian economy has faced slowdown throughout the year 2019. From the auto sector to the textile sector, the economic slowdown has been dominating almost every sector, due to which the production of industries has been affected on the other hand and people have to face problems like unemployment. But as we told you that India's economy is one of the largest economies in the world, so the International Monetary Fund has expressed concern over the ongoing slowdown on the Indian economy.
Regarding the Indian economy that is facing the challenges of global economic slowdown, the International Monetary Fund says that to speed up the economy, India must take big steps at the earliest. The IMF states that the Indian economy is a large economy which is one of the economies that drive global economic growth. According to the IMF, global economic growth may be affected due to the sluggishness of some of the Indian economy. In such a situation, India will have to take some quick measures to increase its economic growth. According to the IMF's annual review, India's economic growth has suffered a setback due to a decline in consumption and investment as well as a decrease in tax revenue.
The IMF says that the Modi Government has done commendable work in many sectors of the economy, due to which millions of people in India have succeeded in coming out of poverty, but after this India is facing the economic slowdown. After a long period of economic slowdown, India is now in dire need of concrete policy monetary measures to overcome it and bring the country's economic growth back on the track. However, the government has limited options to accelerate the economy through spending on development.
According to Geeta Gopinath, Chief Economist of IMF, economic growth will remain weak even in December and March quarter of FY 2019-20. At the same time, Gopinath says, "We expected to accelerate in the remaining two quarters of the current financial year, but now recovery seems difficult. Given the current situation, we have to change our old estimates.” For your information, let us know that on 20 January next year, the IMF will issue a report on India's economic growth outlook, which will help in estimating India's GDP growth rate in the current financial year.
Economist Geeta Gopinath believes that some of the difficulties of the economy cannot be overcome easily and one of these problems is also from the banking sector which is not the problem of India but the whole world. However, Gopinath believes that there are some cases of banking sector problems in India that can be corrected through the Insolvency and Bankruptcy Code (IBC). According to Gopinath, “There are a lot of uncertainties related to the banking sector due to which the risk appetite of banks has come down and this is showing the impact on credit growth as well. Consumption has decreased in rural areas due to declining income and yields and this has led to industry and businesses have to reduce or stop production.”
The IMF has praised the steps taken by the Reserve Bank of India due to the continuing economic slowdown in the Indian economy. According to the IMF, the Reserve Bank of India has cut the repo rate by 1.35 per cent this year, which is enough to boost the pace of the economic system. By the way, the IMF hopes that if India takes some concrete surface measures for the betterment of the economy, it will not get rid of the economic slowdown in this financial year but in the next financial year and India's GDP growth rate once May increase again.
DEC 24 (WTN) - The Indian economy is the 6th largest economy in the world based on GDP. As far as Asia is concerned, the Indian economy with the US $ 2.9 trillion is the third-largest economy in Asia after China and Japan. India has economic relations with many countries of the world and for this reason; the fluctuations in the Indian economy have an impact on the world economy. As you know, the whole world is facing a global economic slowdown at this time. According to the IMF (International Monetary Fund), 90 per cent of the world's economies, including India, have been affected in some way by the global economic slowdown.
But the economic slowdown has had a huge impact on the fast-growing economies like India and Brazilian. The Indian economy has faced slowdown throughout the year 2019. From the auto sector to the textile sector, the economic slowdown has been dominating almost every sector, due to which the production of industries has been affected on the other hand and people have to face problems like unemployment. But as we told you that India's economy is one of the largest economies in the world, so the International Monetary Fund has expressed concern over the ongoing slowdown on the Indian economy.
Regarding the Indian economy that is facing the challenges of global economic slowdown, the International Monetary Fund says that to speed up the economy, India must take big steps at the earliest. The IMF states that the Indian economy is a large economy which is one of the economies that drive global economic growth. According to the IMF, global economic growth may be affected due to the sluggishness of some of the Indian economy. In such a situation, India will have to take some quick measures to increase its economic growth. According to the IMF's annual review, India's economic growth has suffered a setback due to a decline in consumption and investment as well as a decrease in tax revenue.
The IMF says that the Modi Government has done commendable work in many sectors of the economy, due to which millions of people in India have succeeded in coming out of poverty, but after this India is facing the economic slowdown. After a long period of economic slowdown, India is now in dire need of concrete policy monetary measures to overcome it and bring the country's economic growth back on the track. However, the government has limited options to accelerate the economy through spending on development.
According to Geeta Gopinath, Chief Economist of IMF, economic growth will remain weak even in December and March quarter of FY 2019-20. At the same time, Gopinath says, "We expected to accelerate in the remaining two quarters of the current financial year, but now recovery seems difficult. Given the current situation, we have to change our old estimates.” For your information, let us know that on 20 January next year, the IMF will issue a report on India's economic growth outlook, which will help in estimating India's GDP growth rate in the current financial year.
Economist Geeta Gopinath believes that some of the difficulties of the economy cannot be overcome easily and one of these problems is also from the banking sector which is not the problem of India but the whole world. However, Gopinath believes that there are some cases of banking sector problems in India that can be corrected through the Insolvency and Bankruptcy Code (IBC). According to Gopinath, “There are a lot of uncertainties related to the banking sector due to which the risk appetite of banks has come down and this is showing the impact on credit growth as well. Consumption has decreased in rural areas due to declining income and yields and this has led to industry and businesses have to reduce or stop production.”
The IMF has praised the steps taken by the Reserve Bank of India due to the continuing economic slowdown in the Indian economy. According to the IMF, the Reserve Bank of India has cut the repo rate by 1.35 per cent this year, which is enough to boost the pace of the economic system. By the way, the IMF hopes that if India takes some concrete surface measures for the betterment of the economy, it will not get rid of the economic slowdown in this financial year but in the next financial year and India's GDP growth rate once May increase again.
