NEW DELHI: With International Monetary Fund (IMF) projecting that India will reclaim the status of world's fastest-growing economy and projected its growth at 11.5 per cent in 2021, experts on Wednesday said that India is rebounding to achieve the target of a $5 trillion economy.
Commerce and industry minister Piyush Goyal termed the IMF projections for India as "Bright star in the global economy."
"Bright Star in Global Economy: India to continue its growth story at rapid pace under PM @NarendraModi ji, with @IMFNews projecting an impressive 11.5% growth rate for India in 2021. It makes India only major economy to register double-digit growth in 2021," Goyal tweeted.
Charan Singh, CEO, EGROW Foundation and former RBI chair professor said, "As was expected, and I had been arguing that India's fundamentals are strong, IMF, in its latest release has projected India's growth at 11.5 per cent in 2021 and 6.8 per cent in 2022. This is the highest growth rate to be recorded by any country."
Singh said that IMF observed that the substantial revision in India's growth projection is because of stronger than expected recovery after lockdown.
"Hence, India has saved the lives of people in lockdown, and now galloping to recoup growth trajectory. This has been due to the well-calibrated, adequately sequenced policies of the Government. Thus, a V-shaped recovery is on the way, and India is rebounding, to achieve a $5 Trillion Economy, despite the Covid set-back," he added.
DK Mishra, a market expert, said that Covid-19 pandemic has impacted worldwide economies in a big way but
has come out of initial hits due to measures taken by government and strong consumer demands.
"The same is evident from strong GST collections and good agricultural growth. The projection for 11.50 per cent growth by IMF in GDP is yet another confirmation of the strong recovery of the economy. The future outlook with the Covid vaccine in the market will be good for our economy," he said.
In its latest World Economic Outlook update released on Tuesday, the IMF predicted that India's gross domestic product (GDP) will grow at the pace of 11.5 per cent in 2021. IMF projections show that India's economy will grow much better than China which is predicted to grow at 8.1 per cent, followed by Spain (5.9 per cent), France (5.5 per cent) and United States (5.1 per cent).