Revising its growth estimates for India, the International Monetary Fund (IMF) on Tuesday (13 October) observed that India will witness an economic contraction to the tune of 10.3 per cent in 2020-21, following which it shall see strong rebound of 8.8 per cent in 2021-22, reports Economic Times.
As per the IMF, India's projected growth of 8.8 per cent in 2021-22 will be the highest in the world.
Meanwhile, elaborating on the 10.3 per cent of estimated contraction in the ongoing year, IMF said that the revision is on account of the economy contracting much more severely than expected in the second quarter which ended in September.
It should be noted that days ago the Reserve Bank of India (RBI) had also shared its estimate of a 9.5 per cent contraction in the economy in the ongoing year. The World Bank has also projected a 9.6 per cent contraction for the ongoing year.
The IMF report said that all the emerging market and developing economies including India and Indonesia are expected to contract. Meanwhile, China's economy is expected to post a growth of 1.9 per cent in this 2020-21.
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