IMF’s Gita Gopinath on India’s slashed economic growth

India's Economic Growth

On January 21, 2020, the 50th annual meeting was conducted by the World Economic Forum in Davos, Switzerland. According to Gita Gopinath, the chief economist of International Monetary Fund (IMF) and the first woman to occupy top IMF post, India is mainly responsible for 80% of slashed global economic growth.

According to Ms. Gopinath, there is projected global growth of 2.9% for the year 2019 and 3.3% for the year 2020, which is nearly 0.1% lower the estimates in October, for which India’s downgrading economy is primarily responsible due to high stress in non-banking finance sector and unsatisfactory growth in overall rural income.

Nevertheless, she also claimed that the doomed Indian economy is now recovering. Country’s monetary stimulus and corporate tax cuts are helping re-stimulate the economic growth. India’s growth has been evaluated to be 4.8% in 2019. The percentage is expected to increase to 5.8% in 2020 and 6.5% in 2021.

A day after Jeff Bezos, the world’s richest person and CEO of Amazon, declared an investment of $1 billion in India, Commerce Minister Piyush Goyal said that Jeff wasn’t doing a favor to India with his investment. Nevertheless, on January 17, 2020, Goyal mentioned that the government is now open to various kinds of investment in the country until e-commerce firms and businesses adhere strictly to the rules and regulations of India.

On January 21, 2020, the 50th annual meeting was conducted by the World Economic Forum in Davos, Switzerland. According to Gita Gopinath, the chief economist of International Monetary Fund (IMF) and the first woman to occupy top IMF post, India is mainly responsible for 80% of slashed global economic growth.

According to Ms. Gopinath, there is projected global growth of 2.9% for the year 2019 and 3.3% for the year 2020, which is nearly 0.1% lower the estimates in October, for which India’s downgrading economy is primarily responsible due to high stress in non-banking finance sector and unsatisfactory growth in overall rural income.

Nevertheless, she also claimed that the doomed Indian economy is now recovering. Country’s monetary stimulus and corporate tax cuts are helping re-stimulate the economic growth. India’s growth has been evaluated to be 4.8% in 2019. The percentage is expected to increase to 5.8% in 2020 and 6.5% in 2021.

A day after Jeff Bezos, the world’s richest person and CEO of Amazon, declared an investment of $1 billion in India, Commerce Minister Piyush Goyal said that Jeff wasn’t doing a favor to India with his investment. Nevertheless, on January 17, 2020, Goyal mentioned that the government is now open to various kinds of investment in the country until e-commerce firms and businesses adhere strictly to the rules and regulations of India.

While the controversies about Goyal’s statement are still at their peak, Gita Gopinath claimed that India needs tremendous investment to raise the country’s growth potential. It is also equally important to create an appropriate environment that encourages more and more investment from national and international sources.

While the controversies about Goyal’s statement are still at their peak, Gita Gopinath claimed that India needs tremendous investment to raise the country’s growth potential. It is also equally important to create an appropriate environment that encourages more and more investment from national and international sources.

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