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HomeBusinessIMF said – the economy is improving, but measures like privatization will...

IMF said – the economy is improving, but measures like privatization will have to be continued to spend

Despite the pandemic, India continued with structural reforms, including labor reforms and a privatization plan.

The International Monetary Fund (IMF) has appreciated the steps taken by India amid the Kovid-19 epidemic. The IMF said that India took ‘rapid and strong’ steps amid the pandemic situation and at the same time continued its labor reforms and privatization process. He also said that there should be no decline in revenue generation, for this the work of privatization will have to continue. The IMF, however, has warned in its report that the economic scenario is still uncertain due to the uncertainties related to the pandemic.

The IMF’s report ‘Article-4’ states that the continued negative impact of Kovid-19 on investments may delay the economic revival. On the Indian government’s handling of the pandemic, the multilateral agency said it was “quick and satisfactory”. “The government gave financial support. Financial support was given to the vulnerable sections of the society. Monetary policy was liberalised, liquidity provisions were made and regulatory policies were softened.

Growth rate is expected to be 9.5 percent in the current financial year

The IMF has projected India’s economic growth rate to be 9.5 percent in the current financial year 2021-22. It estimates that in the next financial year 2022-23, the Indian economy will grow at the rate of 8.5 percent. IMF estimates that headline inflation will remain at 5.6 per cent in the current financial year.

Doubts on economic outlook

The IMF said, “There are clouds of uncertainty over the economic scenario. The continued negative impact of the COVID-19 pandemic on investment, human capital and other growth factors could delay the revival and impact medium-term growth. But the disruption in education and training caused by the pandemic could affect the improvement of human labor capital.

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Shehnaz Ali
Shehnaz is a Corporate Communications Expert by profession and writer by Passion. She has experience of many years in the same. Her educational background in Mass communication has given her a broad base from which to approach many topics. She enjoys writing about Public relations, Corporate communications, travel, entrepreneurship, insurance, and finance among others.
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