India’s economic growth faced hurdles during current fiscal year due to private consumption that resulted in lack of cash. However, according to an IMF report earlier on Tuesday, the country is expected to bounce back and grow at a healthy rate of 7.2% throughout the upcoming fiscal year. IMF also revealed that the growth will continue for the fiscal year of 2018-19 with a healthy rate of 7.7%.
The organization pointed out that the country’s economy is largely dependent on agricultural production and labor force as the sector is the most labor-intensive sector of the economy and employs around half of India’s workers. The sector is predicted to experience stable boom thanks to a favorable monsoon this year. The organizations said that if the country wants to improve its economic outlook even further, they will need to provide farmers more flexibility in distributing and marketing their crops as this will help improve competitiveness, efficiency, and transparency. IMF added, “In India, growth is projected to rebound to 7.2% in FY2017-18 and further to 7.7% in FY2018-19.”
This report comes after United Nations predicted that the country will experience a stable economic growth of 7.1 percent during 2017 and it will continue with a healthy rate of 7.5 percent in the next year. However, the report pointed out that the country is in risks involved with the bad loans in the public sectors. Afterwards, the government empowered the Reserve Bank of India to tackle the problem. It’ll be worthwhile to see the country going through the larger economic boom after it experienced major economic boost over last several years.