Internal factors root cause of India's economic decline: IMF

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SME Times News Bureau | 04 Apr, 2014
India's declining economic growth has been caused primarily by the internal factors, said the International Monetary Fund (IMF) on Thursday.

"...the pullback in growth for some emerging market economies since 2012 is mostly attributable to internal factors," the IMF said in its World Economic Outlook (WEO).

India's economic growth, which touched 8.9 percent in 2010-11, declined to 6.7 percent in the following year (2011-12) and touched a decade's low of 4.5 percent in 2012-13.

The WEO chapter on emerging economies said that in case of India, "internal factors reduced growth from 2011 until the third quarter of 2012, but there is an increase in their contribution since late 2012".

As for the 2013-14, the Central Statistics Office (CSO) has pegged it at 4.9 percent.

However, as per projections of the Asian Development Bank (ADB) and the Reserve Bank of India (RBI), the growth in the current fiscal year is likely to increase to 5.5 percent.