India’s economy will contract by a whopping 10.3 percent this year, the IMF said.
New Delhi:
India is projected to fall below Bangladesh in terms of Gross Domestic Product (GDP) per capita, as the economy, according to the International Monetary Fund, is forecast to contract by 10.3% this year. The IMF forecast for India, a huge downward revision from its previous prediction in June, will see the biggest contraction among major emerging markets amid the coronavirus pandemic.
According to the IMF’s “World Economic Outlook” report released Tuesday, India’s GDP per capita will plunge 10.3 percent to $ 1,877 this fiscal year ending March 31, 2021. IMF in June said production would drop 4.5 percent. Bangladesh’s per capita GDP in dollar terms is expected to grow 4 percent in 2020 to $ 1,888, according to the IMF report.
However, India, Asia’s third-largest economy, is likely to rebound with an impressive growth rate of 8.8 percent in 2021, thereby regaining its position as the fastest-growing emerging economy, outpacing the growth rate. China’s projected 8.2 percent, the IMF said. .
Released ahead of the annual meetings of the IMF and World Bank, the report said global growth would contract 4.4% this year and return to 5.2% in 2021.
Congressional top leader Rahul Gandhi, who has been critical of the center on the state of the economy, attacked the government after IMF projections. “Solid 6-year achievement of BJP’s hateful cultural nationalism. Bangladesh is ready to surpass India,” he tweeted today.
India’s projected decline is the largest of all major economies except Italy and Spain, and the largest among major emerging markets.
Among the other countries of the BRICS group, Brazil’s economy will contract by 5.8 percent, Russia by 4.1 percent, South Africa by 8.0 percent, while China will grow by 1.9 percent, according to the IMF report.
(With inputs from PTI and AFP)
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