1 Updates
India questions IMF's lowered growth projections
Photo Credit: RAVEENDRAN, Getty Images

India questions IMF's lowered growth projections

Oct 12 2013, 11:36pm CDT | by IANS

Washington, Oct 13 (IANS) India has joined issue with the International Monetary Fund (IMF) over the paring down of its growth rate from 5.6 percent to 3.8 percent since July saying India didn't share "this pessimistic outlook".

Washington, Oct 13 — India has joined issue with the International Monetary Fund (IMF) over the paring down of its growth rate from 5.6 percent to 3.8 percent since July saying India didn't share "...

Filed under: news

Full Story below YouTube Videos

 
 

 

26 weeks ago

India questions IMF's lowered growth projections

Oct 12 2013, 11:36pm CDT | by IANS

Washington, Oct 13 (IANS) India has joined issue with the International Monetary Fund (IMF) over the paring down of its growth rate from 5.6 percent to 3.8 percent since July saying India didn't share "this pessimistic outlook".

Washington, Oct 13 — India has joined issue with the International Monetary Fund (IMF) over the paring down of its growth rate from 5.6 percent to 3.8 percent since July saying India didn't share "this pessimistic outlook".

"I would like to ask, respectfully, what is the information that IMF has gathered between July and September, that we do not have, that has impelled the Fund to drastically change the estimate?" Finance Minister P. Chidambaram asked Saturday.

"We do not share this pessimistic outlook," he said addressing the plenary of the Fund's steering International Monetary and Financial Committee at the Fund-World Bank's just concluded annual meetings here.

Noting that in some cases IMF projections have been revised downwards significantly in the very next update and have in the past often been at divergence with final growth numbers, he also stressed the "need for reviewing the methodology for growth projections."

"There is no doubt that the Indian economy has suffered from a significant downturn this year," Chidambaram acknowledged while pointing out that India has "taken several measures to put our economy on a sustainable growth path."

Steps have been to taken ease supply constraints and improve the investment climate and necessary measures initiated to contain the fiscal deficit and the current account deficit, he said.

Committed to the path of fiscal consolidation, the Indian government would not allow the red lines on the two deficits to be breached under any circumstances, Chidambaram said. "We are prepared to take difficult decisions in this regard, should the need arise," he added.

Projects amounting to more than $64 billion have been cleared in the last few months. Once these projects come on stream, they should have an all-round salutary effect, he said.

Describing persistent inflation as another major challenge facing the Indian economy, he said India has taken measures to bring inflation down through a mix of demand-side and supply-side policies.

At a press briefing Friday IMF's Director, Asia and Pacific Department Anoop Singh had said IMF lowered its growth forecasts for India as "there has been fallout from recent stress."

However, he acknowledged that corrective policies are being taken and "as a result, we expect growth to pick up in India next year."

Asked about India's disagreement with the IMF assessment, Anoop Singh suggested there wasn't a "huge difference" between the growth projections and "the issue simply is how quickly the economy responds."

"Going by historical evidence, it will take several quarters, and the economy may only fully recover next year," he added by way of explanation. "I certainly hope that we are wrong and that the economy recovers faster and the lags are shorter.

(Arun Kumar can be contacted at arun.kumar@ians.in)

IANS

Source: IANS

 

Don't miss ...

 

blog comments powered by Disqus

Latest stories

5 features an Amazon phone might offer
NEW YORK (AP) — Rumors of an Amazon smartphone reached a fever pitch this week, with the Wall Street Journal reporting that the device could be due out this year. Amazon hasn't confirmed that it has plans...
 
 
Why Drink Organic, Biodynamic And Sustainable Wines For Earth Day?
Six Organic Wines To Try Now Talking about organic wine is surprisingly complicated. When I set out to write this column I planned on rounding up some organic producers, tasting some wines and calling out the tastiest...
 
 
Washington's Anxiety as the President Heads to Asia
Anxiety is everywhere these days in the debate over U.S. policy toward Asia. Here in Washington, there seems to be deep anxiety about the Obama administration’s ability to fulfill its promise to rebalance to Asia. In...
 
 
'The Elder Scrolls Online' Hit With First Major Bug, The Infinite Dupe
When you make an MMO, you will eventually learn a hard lesson about how a single bug can derail your entire game. Right now, that’s exactly what’s happening with The Elder Scrolls Online. Players are rolling around in...
 
 
 

Latest from the Network

Ryan Seacrest to quit 'American Idol'?
Ryan Seacrest is reportedly planning to quit 'American Idol.' The 39-year-old star, who has hosted the US reality singing competition since its first season in 2002, wants to jump ship before the FOX series is cancelled...
Read more on Celebrity Balla
 
iOS 6 Users Facing Problems with FaceTime
The iOS 6 users are getting frustrated with the FaceTime, a popular video calling software, as it is continuing to crash in their iPhones and iPads.The users have informed the problem on a thread of Apple Support...
Read more on Apple Balla
 
Apple Offering Redesigned iPad Mini with Retina Display at 15% Discount
Apple brings a great offer for the iPad lovers, as the company decides to sell the refurbished model of iPad Mini with Retina display with a great discount of 15%.According to Apple Insider, the 16-GB model is being...
Read more on Apple Balla
 
SungardASVoice: Three Things Businesses Can Learn From The Decline Of American Idol
By Adam Wren Thirteen years into its prime-time run, “American Idol” is a brand in decline. But the kinds of things the show can do–and, in some cases, is doing–to change its fortunes can serve as an example to other...
Read more on Apple Balla
 
Justin Bieber crashed Drake Bell's party
Justin Bieber crashed Drake Bell's album party on Thursday night (04.17.14). The 20-year-old singer - who has been repeatedly attacked by the former Nickelodeon star on Twitter in recent months - went out of his way to...
Read more on Celebrity Balla
 
5 features an Amazon phone might offer
NEW YORK (AP) — Rumors of an Amazon smartphone reached a fever pitch this week, with the Wall Street Journal reporting that the device could be due out this year. Amazon hasn't confirmed that it has plans...
Read more on Business Balla
 
Asia's Week: Japan's Rebound Gets More Taxing
Another calamitous loss of human life gripped Asia’s attention this week, relegating economic matters to secondary notice, but they were also of concern. China’s growth pauses never cease to furrow brows but it is Japan...
Read more on Auto Balla
 
Why Drink Organic, Biodynamic And Sustainable Wines For Earth Day?
Six Organic Wines To Try Now Talking about organic wine is surprisingly complicated. When I set out to write this column I planned on rounding up some organic producers, tasting some wines and calling out the tastiest...
Read more on Business Balla
 
Washington's Anxiety as the President Heads to Asia
Anxiety is everywhere these days in the debate over U.S. policy toward Asia. Here in Washington, there seems to be deep anxiety about the Obama administration’s ability to fulfill its promise to rebalance to Asia. In...
Read more on Business Balla
 
 
Auto Balla Sexy Balla Sport Balla TV Balla Politics Balla Movie Balla Apple Balla Business Balla Ad Balla Celebrity Balla