India News - IMF calls for 'urgent' action by India amid slowdown

India News - IMF calls for 'urgent' action by India amid slowdown
India News - IMF calls for 'urgent' action by India amid slowdown

Thank you for reading the news about IMF calls for 'urgent' action by India amid slowdown and now with the details

Aden - Yasmine El Tohamy - India's government must take steps quickly to reverse the economic slowdown of an economy that has been one of the engines of global growth, the International Monetary Fund said on Monday.

Declining consumption and investment, and falling tax revenue, have combined with other factors to put the brakes on one of the fastest growing economies in the world, the IMF said in its annual review.

After lifting millions out of poverty "India is now in the midst of a significant economic slowdown," Ranil Salgado, of the IMF Asia and Pacific Department, told reporters.

"Addressing the current downturn and returning India to a high growth path requires urgent policy actions."

However, the government has limited space to boost spending to support growth, especially given high debt levels and interest payments, the fund warned IMF chief economist Gita Gopinath last week said India's slowdown had "surprised to the downside," and said the fund is set to significantly downgrade its growth estimates for the Indian economy in the World Economic Outlook which will be released next month.

The IMF in October slashed its forecast for 2019 by nearly a full point to 6.1 per cent, while cutting the outlook for 2020 to 7.0 per cent.

Salgado said India's central bank has "room to cut the policy rate further, especially if the economic slowdown continues."

The Reserve Bank of India (RBI) cut the key lending rate five times this year to a nine-year low, but at its last meeting earlier this month defied expectations by keeping policy unchanged.

The central bank slashed its annual growth forecast to 5 per cent from 6.1 per cent, as consumer demand and manufacturing activity contracts.

India's economy grew at its slowest pace in more than six years in the July-September period, down to 4.5 per cent from 7.0 percent a year ago, according to government data.

Salgado said "the government needs to reinvigorate the reform agenda," including restoring the health of the financial sector in order to "enhance its ability to provide credit to the economy."

These were the details of the news India News - IMF calls for 'urgent' action by India amid slowdown for this day. We hope that we have succeeded by giving you the full details and information. To follow all our news, you can subscribe to the alerts system or to one of our different systems to provide you with all that is new.

It is also worth noting that the original news has been published and is available at Khaleej Times and the editorial team at AlKhaleej Today has confirmed it and it has been modified, and it may have been completely transferred or quoted from it and you can read and follow this news from its main source.

PREV State premier Laschet is frontrunner to succeed Germany's Merkel, say party sources
NEXT Once again … New Zealand overcomes the second wave of Covid-19...