IMF projects 5.4% growth for India in 2014-15

Projecting growth rate of 4.6 per cent in 2013-14, IMF on Thursday said the Indian economy is likely to expand by 5.4 per cent next year on stronger global scenario, improving export competitiveness, a favourable monsoon and a confidence boost after recent policy actions.

The multilateral agency also sees inflation, driven by food prices, remaining near double digits in 2014-15. It also said tight monetary policy is likely to slow growth recovery.
"Growth is projected at 4.6 per cent for fiscal year 2013-14, and should pick up to 5.4 per cent in 2014-15 (at factor cost)," the International Monetary Fund (IMF) said in its report after concluding annual discussions with India.

Stronger global growth, improving export competitiveness, a favorable monsoon and a confidence boost from recent policy actions should deliver a modest growth rebound, it added.

"However, fiscal restraint and a tighter monetary stance will act as headwinds, slowing the recovery," IMF said.

Finance Minister P Chidambaram in his interim budget on last Monday had said economy was picking up and 6 per cent growth was doable in the 2014-15.