IMF lowers India’s economic growth forecast to 9.5%
Although the United States says the Indian economy has not been hit hard by the second wave, international organizations have continued to lower their economic growth forecast for fiscal 2024.
Indian Economic Growth
At present, the International Monetary Fund has lowered its economic growth forecast for fiscal 2024 to 9.5 percent. Earlier, the International Monetary Fund had forecast that India would grow by 12.5 percent in the current financial year, but the second corona outbreak in March-May affected the country’s economic growth the most.
Global economic growth
At the same time, the world’s economic growth forecast for 2024 remains unchanged at 6 percent. But India’s economic growth has been greatly affected.
International Monetary Fund
Similarly, the International Monetary Fund has raised economic growth to 8.5 percent for fiscal 2024. This is 1.6 percent higher than the previous estimate.
China
Like India, China’s economic growth forecast was cut by the International Monetary Fund by 0.3 percent to 8.1 percent. China’s economic growth has been affected by the corona epidemic, floods, production disruptions and a slump in raw material prices.
IMF system
A study by IMF economist Rusir Agarwal and chief economist Geeta Gopinath predicts that by the end of 2024, only 30 percent of people in India will be vaccinated.
The worst situation in India
India’s 2nd corona wave has hit hard after Brazil’s worst situation. As a result, India is more likely to face a worse situation. The IMF has warned that Winter is almost coming.
Corona 2nd wave
While the Indian medical community has been very successful in handling the first wave of corona in India, we have lost many lives in the second wave due to the severe shortage of adequate medical care for the people, oxygen, and hospital beds.
Middle economic countries
The IMF said in a statement that the impact on India would be felt in low- and middle-income countries, so caution should be exercised.
Vaccine forced
In addition, the IMF says it needs to buy 1 billion vaccines immediately to protect 60 percent of its population in India from the corona vaccine and to invest large sums in improving the medical sector.
May increase the tax rate
In such a scenario, the International Monetary Fund (IMF) said in a statement that the tax increase on assets, ie the tax rate on high-income earners, and the increase in taxes on corporates would help revive the corona-paralyzed economy.
Possibility of Opportunities
In some countries, the increase in personal income tax, the increase in taxes on corporates may be increased as new. There is a chance for that. Because this is one of the things that are already on hand. The international community has faced a challenging situation due to the corona last year. People went into extreme poverty. So recovering people from this is a challenging task. So this is also something to think about.
Poor rich gap
A recent Oxfam report described how the epidemic widened the income gap between the rich and the poor during the Great Depression. It said the income gap between the rich and the poor has increased not only in India but in all countries around the world.
