Zee Media Bureau
New Delhi: The International Monetary Fund on Wednesday said the Indian economy was on recovery path and that it would grow at 7.3 percent in the fiscal year 2015-16.
This projections is however unchanged from its earlier projection at the same rate in January.
However, backed by a collapse in oil prices and relatively low exposure to current global financial turbulence, India's economic growth should pick up and grow at 7.5 percent in fiscal year 2016-17, the IMF said.
Earlier in January, the IMF had kept India's growth projection unchanged at 7.3 percent in the current fiscal and 7.5 percent in the next, even as it cut world economic outlook to 3.4 percent for 2016.
Second-term appointed IMF chief Christine Lagarde had also said that India was enjoying robust growth even as emerging economies as a whole are facing the harsh reality of slow growth and reversal of capital flows.
The agency, however, sais inflation was behaving and was on track, with monetary conditions consistent with hitting the Reserve Bank of India`s target for consumer price inflation of 5 percent by March 2017.
And, while the balance of economic risks has improved, they remain tilted to the downside. These included the impact of intensified volatility on global financial markets, including from surprise unexpected U.S. monetary policy moves or China`s economic slowdown.
With Agency Inputs