Sun of Growth Shining Upon India More Than Ever, According to IMF Reports
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The sun of growth is shining on India more than ever. Unbelievable, isn’t it? The recent Regional Outlook Report by IMF for Asia and Pacific indicate this. India has been growing rapidly in terms of economic growth. It has also seen various changes and undergone several tests of time including the demonetization of 500 and 1000 rupee notes but it seems that the sun is beginning to shine now. As Alfred in Batman movie correctly points out, “The night is darkest just before the dawn.” The implementation of the Goods and Services Tax or GST has removed the cascading effect of taxes as was the case earlier.
Growth, Sunrise, Advance
The report by IMF makes Indians aware of the conspicuous benefits it has been reaping from the numerous changes in policy-making experienced over the last few years. According to the database’s GDP Growth Rate Projection Table, India’s Real GDP will be 7.4 in 2018 and will jump to 7.8 in 2019. Following India are the underdogs, Bhutan and Bangladesh with 7.1 and 7.0 growth rate respectively. China, the alpha economy, showed signs of stagnation at 6.6 growth rate which is said to dip to 6.4 further.
Not an Easy Past
IMF, in the report, recognized that the Indian economy has bounced back “from temporary disruptions” owing to the “currency exchange initiative” and the “rollout of the Goods and Services Tax” but for now the road seems to be clear.
It also highlighted that Asia is becoming digital. The report stressed that Asia might be heading towards a “digital revolution” which could prove to be “transformative” but may pose several challenges in the future. Another unmissable aspect of the report was that the largest continent despite having 5.6 per cent growth in 2018 and 2019, which amounts to two-thirds of the global growth, continues to battle with population ageing and declining productivity growth and would need structural reforms to combat dwindling numbers in the long run.