IMF pegs India economic growth rate at 5.9% in 2013

IMF in its update to the World Economic Outlook (WEO) also said the global growth is expected to reach 3.5 per cent this year, higher than the estimated 3.2 per cent.

For China, the IMF report has projected a growth rate of 7.8 per cent in 2012, 8.2 per cent in 2013 and 8.5 per cent in 2014.

In 2011, China had achieved a growth rate of 9.3 per cent while India grew by 7.9 per cent in the same year.

"Growth in emerging market and developing economies is on track to build to 5.5 per cent in 2013. Nevertheless, growth is not projected to rebound to the high rates recorded in 2010-11. Supportive policies have underpinned much of the recent acceleration in activity in many economies," the IMF said.

"But weakness in advanced economies will weigh on external demand, as well as on the terms of trade of commodity exporters, given the assumption of lower commodity prices in 2013 in this update,” it said.

IMF said the space for further policy easing has diminished, while supply bottlenecks and policy uncertainty have hampered growth in some economies for example, Brazil and India.

Observing that economic conditions improved modestly in the third quarter of 2012, with global growth increasing to about three per cent, the IMF report said the main sources

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