1. Bad news for Modi-baiters: Not China, India to be world’s fastest growing economy in 2017, 2018, says IMF

Bad news for Modi-baiters: Not China, India to be world’s fastest growing economy in 2017, 2018, says IMF

Despite the "negative" IMF forecast for 2016 and 2017, as claimed by the critics of demonetisation, India would continue to grow faster than China in 2017 and 2018 by huge margins.

By: | New Delhi | Updated: January 18, 2017 4:28 PM
 narendra modi, modi imf, imf forecast, international monetary fund, imf india forecast, india china, china india, indian economy, indian economy forecast, china economy forecast, india china economy, congress, rahul gandhi, manmohan singh, modi manmohan, manmohan modi, modi rahul, rahul modi, modi congress, congress modi, demonetisation, noteban, demonetisation effect, demonetisation impact Prime Minister Narendra Modi during the Central Election Committee (CEC) for Uttrakhand state elections, at BJP headquarters in New Delhi on Sunday. (PTI Photo)

International Monetary Fund’s latest World Economic Outlook update slashing India’s growth prospects for 2016 by one percentage point has provided the Congress party and other Modi-baiters with another opportunity to attack the NDA government in Centre. In a series of tweets following the release of IMF report on Monday, the Congress claimed former Prime Minister Manmohan Singh had already warned of a slump in the economy in the beginning of demonetisation exercise announced by Prime Minister Narendra Modi on November 8, 2016.

“Dr. Manmohan Singh warned against the drop in the beginning of demonetization. The ego of an individual has pushed billion ppl into trouble!,” the Indian National Congress tweeted. The party even accused Modi government of pushing India backwards on the line of government in Pakistan.

WATCH VIDEO | IMF Says India To Be World’s Fastest Growing Economy In 2017, 2018

 

imf, imf report, modi, imf on india, imf india Overview of World Economic Outlook projections.

However, the party appears to have not read the details of the report in depth. As the party has already used IMF report to attack the government, here’s something that may force Congress vice-president Rahul Gandhi, Manmohan Singh and other opposition leaders to recalibrate their strategy against Modi.

Owing to “the temporary negative consumption shock induced by cash shortages and payment disruptions associated with the recent currency note withdrawal and exchange initiative, the IMF has slashed India’s forecast for 2016 from 7.6 to 6.6%. The forecast for 2017 has also been slightly reduced by 0.4%.

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However, despite the “negative” IMF forecast for 2016 and 2017, as claimed by the critics of demonetisation, India would continue to grow faster than China in 2017 and 2018 by huge margins. For the year 2016, IMF has estimated growth in China to be at 6.7%, which is just 0.1% higher than India’s 6.6.

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If the forecast is to be believed, Indian economy would take a big leap in the next two years. In 2017, India would grow at 7.2% and at 7.7% in 2018. In contrast, China would grow at 6.5% and 6.0% in the respective years.

ALSO READ I Demonetisation dilemma: Should you trust NaMo or MaMo?

The possibility of India growing more than the IMF forecast is also high. The report has mentioned that current trimming of India’s growth forecast is because of the “negative consumption”. However, with so much money available with banks after demonetisation and expected sops to be announced by Finance Minister Arun Jaitley in the upcoming Union Budget 2017, consumption pattern may grow faster than what have been estimated by the IMF for the forecast. Earlier, World Bank had also predicted healthy growth of Indian Economy in the years 2017 and 2018.

The next General Elections are scheduled for 2019. In the words of Bihar Chief Minister Nitish Kumar, PM Modi would be “riding an elephant” if IMF forecast becomes true.

  1. ATAL RAI
    Jan 17, 2017 at 8:44 am
    I KNEW IT, ONE DAY INDIA WILL BE LARGEST ECONOMY TOO IF NAMOJI WILL REMAIN PM OF INDIA ATLEAST FOR 15 YRS. I WANT TO SEE INDIA A NO. -1 COUNTRY in the world.
    Reply
    1. Anjani Kumar
      Jan 17, 2017 at 5:06 pm
      This is the firing time on Congress to make over their negative calculation, what they had done in last 65 years.
      Reply
      1. F
        Ffhjjji
        Jan 18, 2017 at 9:56 am
        China's economy is growing just .4% than ours?? Their 1% is like 10 times bigger than ours
        Reply
        1. H
          Hikash
          Jan 18, 2017 at 5:04 am
          Atleast so.eone is taking initiative to change thingsplease appreciate
          Reply
          1. S
            Sharad Joshi
            Jan 18, 2017 at 12:01 pm
            Ma mo has Bn a
            Reply
            1. S
              Sharad Joshi
              Jan 18, 2017 at 11:59 am
              Namo my. PM can not go wrong!!!Let Ma MO eat hisown shI.t.This fello never opened his .. trap once as of a PM....Shi of a PM.Jai ho. Na Mo
              Reply
              1. K
                KS Mehta
                Jan 17, 2017 at 1:01 pm
                A layman can predict the future bust coming in the Indian economy. How one party is not agree with majority of economist. It is really very bad to the critics (khisiyani bilee Khanna noche).
                Reply
                1. M
                  Mgsganesan
                  Jan 18, 2017 at 6:28 am
                  Very good F/ information n share market newsbestone
                  Reply
                  1. K
                    K s
                    Jan 18, 2017 at 3:41 am
                    Demonetisation is good but its implementation was faulty but we should look forward and not keep complaining.
                    Reply
                    1. T
                      Tejas
                      Jan 18, 2017 at 10:43 am
                      Yeah! The sun rises from the west. Thanks for confirming.
                      Reply
                      1. Abhishek Jain
                        Jan 18, 2017 at 3:49 am
                        We are with Modi never seen such an active PM in 42 years of my life, he not only inspire us but fill us with proud and motivate us to work for India and with no minority or majority appeat. India is going to be one nation if all including minority support him, also no gain without pain, sometimes feel so ashamed with people who do nothing just criticise him for doing the right thing, 60 years of misruleStart can not be undone in few years
                        Reply
                        1. A
                          Ashu Kumar
                          Jan 17, 2017 at 2:59 pm
                          Author has not told that China is 10 trillion economy while India is 1 trillion economy . Comparing them on % basis would not be fair and China saturating to acquire developed economy status. ManMohan Singh has predicted the future due to stress on economy by cash crunch which would take 2 years to recover provided we have normal monsoon and low oil prices.
                          Reply
                          1. A
                            Ahsan Mohiuddin
                            Jan 17, 2017 at 5:10 pm
                            That is because China's economy is already"grown" and India' is" still growing"(in a wrong direction though)India and China are not in the same category before the IMF. India is a "borrower" and China is a "patron"(of the IMFMore pointedly,china is not,"competing" with India in world economic market.It competes with U.S. an etc who even owe it money.
                            Reply
                            1. Ananth Narain
                              Jan 18, 2017 at 1:21 pm
                              Already the Modi Baiters were celebrating prematurely and stupidly.
                              Reply
                              1. A
                                Ashutosh
                                Jan 17, 2017 at 11:45 pm
                                Sir...China does not have democracy hence a particular community cannot produce 15 children per family to bring economy & other vital parameters of growth down...Try & express soo freely or rather irresponsibly in ur native country pak or even its friend China & u would feel the diff.
                                Reply
                                1. A
                                  Anil
                                  Jan 17, 2017 at 3:03 pm
                                  Wondering why the heading is written in the highest sarcastic way possible. Am doubtful about the author that he is a modi hater. This is ridiculous and bizarre.
                                  Reply
                                  1. Anshuman
                                    Jan 18, 2017 at 10:16 am
                                    But this clearly means India would have grown much faster than China, had there been no demonetization. How you spin the obvious truth is laudable. I guess facts don't matter anymore
                                    Reply
                                    1. G
                                      Gaurav Jain
                                      Jan 17, 2017 at 11:12 am
                                      please remove " minus" sign before 1 in your post.
                                      Reply
                                      1. G
                                        Gaurav Jain
                                        Jan 17, 2017 at 11:11 am
                                        poor article. you are basing your opinion on "antited" sops and the money deposited with the banks does not belong to banks, it belongs to the people. if there are artificial limits on withdrawal then obviously money parked in the banks would be high temporarily.
                                        Reply
                                        1. Bharath Kumar
                                          Jan 18, 2017 at 3:06 pm
                                          We do not need any Foreign agencies or people to tell us what our economic condition is. By just looking around itself is enough to know that this country's economy is in shambles because of Modi's thoughtless demonetization. No black money, no terror money, and no fake currencies to talk off, so shifted the goal to Digital but without any infrastructure.
                                          Reply
                                          1. C
                                            Chandan.R
                                            Jan 17, 2017 at 11:53 am
                                            vote for Congress
                                            Reply
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