The International Monetary Fund (IMF), which predicted in April this year that India can not become a $5 trillion economy until 2028-2029, has reworked its forecast in the World Economic Outlook database, reported Swarajya.
As per the latest revision by IMF, India will reach its $5 trillion economy target by 2026-2027 i.e. two years earlier than they initially predicted. The new forecast also claims that India will become a $5.5 trillion economy in 2027-2028.
Swarajya reported that the change in forecast is due to the assumption that the rupee will depreciate to ₹84 against the US dollar and not ₹94.
“This turnaround is to the Fund’s credit, for it suggests an open-mindedness and willingness to correct its assumptions. This is more in sync with assumptions about growth, inflation differentials between India and the US, and exchange rates,” the report emphasised.
The International Monetary Fund did not consider the growth of the Indian economy in nominal or real terms and focused primarily on the dollar-rupee exchange rate.
“Anyone who has monitored the behaviour of the rupee’s exchange rates in the past two decades will note two things: one, there are years of relative stability and then a year or two of sharp fall, followed again by a period of stability. The current exchange rate fall of the rupee against the dollar is an example of the latter. We can expect stability to return before the year is out,” Swarajya reported.
Along with that, IMF revised predictions now say that India’s per capita GDP will remain ahead of Bangladesh till 2027.
— Abhishek (@AbhishBanerj) May 16, 2022
Another liberal talking point demolished.
Time for liberals to issue grovelling apology?
While speaking about the development, columnist and author Abhishek pointed out, “IMF has officially taken back its forecast saying India will be 5 trillion economy only in 2029. Now IMF revised prediction says India will reach $5T in 2026. At the time IMF made the wrong forecast, the media mocked Modi. Will they apologize now?”
He further added that the contentious claim that Bangladesh has overtaken India in terms of GDP per capita has also been revised by IMF. The international financial institution has now claimed that the per capita GDP of India will remain ahead of Bangladesh till 2027.
Bangladesh having higher per capita GDP than India is now officially fake news
— Abhishek (@AbhishBanerj) May 17, 2022
IMF has revised all its predictions
Ind > BD from 2021 till 2027
2020 was just a random exception due to pandemic
Imagine the media frenzy over just 1 random year
Will they apologize now?
“Bangladesh having higher per capita GDP than India is now officially fake news. IMF has revised all its predictions. Ind > BD from 2021 till 2027.2020 was just a random exception due to the pandemic. Imagine the media frenzy over just 1 random year,” he emphasised.
It must be mentioned that several media publications such as Business Standard and The Economic Times had earlier covered the news about IMF predicting a delayed timeline for India to achieve the $5 trillion economy target. At the time of writing, both publications had not covered the story of revised IMF predictions about India.
