Since the Modi Government took the office, GDP and Growth rate has shown immense positivity down the years. Many analyst who are known to be highly “eminent and prominent” have forecasted that after the demonetization attempt, the India’s GDP and growth rate will fall but they fainted when both the rates shown no negative signs.
Now IMF has forecasted India’s growth rate to be modest for this financial year but for 2018-19, the IMF forecasted growth by up to .5%. This news has certainly been hailed by the center and its alliance partners while the opposition is busy in exploring EVMs.
Noted Statements by the IMF:
IMF noted that the present growth rate hasn’t been affected by the demonetization attempt to a larger extent. Though the rate has nearly been the same at present but is bound to grow in near future. The IMF said that demonetization was a barrier but not strong enough to impact the economic growth. India had the growth rate of 6.8% in 2016 and presently it has the growth rate of 7.2%.
The IMF also gave predictions for the next fiscal year that is 2018-19. India may see a surge of 0.5% in growth rate with respect to the present rate, which means that India’s growth rate will be 7.7% for next fiscal year of 2018-19. The IMF cited economic reforms for India’s growth rate and favorable monsoon season. It urged the Indian government to liberalize Indian economy and remove bottlenecks from the system to ensure smooth growth.
Challenges in India’s GDP Growth:
The report also said that India should focus on the agricultural sector as it remains a key challenge as it employs a huge population of India. Liberalization of economy, removing bottlenecks, improving flexibility and increasing efficiency in the system is what that is required. The report hailed the government for being smart and active in taking calculated measures.
While liberalization in economy has remained the most talk about subject, FDI in retail sector is still a matter of debate for the government. It is sure that FDI in retail will provide jobs but on the other hand it will kill start-ups and retail ownership. There can’t be any question that local retail markets can stand against giant retail stores like Wal-Mart. Eventually people will lose ownership and will only become a lifelong servant of “his majesty”.