Ever since Prime Minister Narendra Modi came in power, the country witnessed several policy changes and reforms. While some appreciated the decisions, there are a lot of people who have criticized the government for not fulfilling the promises. The whole economy can't change in a year or two. It's a slow and gradual process. And after 4 years in power of PM Modi, the country is finally witnessing some positive changes. According to a report of International Monetary Fund (IMF), India has become one of the world's fastest growing economy as reforms are starting to pay off.
According to IMF, India accounts for 15% of global growth. The growth forecast for fiscal year 2019 is 7.3 % while for the following year it is 7.5%.
Ranil Salgado, IMF's Mission Chief for India said, "Of total global growth in Purchasing power parity (PPP) terms, it's 15 per cent of total global growth. Trading is not as high as China trade levels."
He also expressed that IMF sees India as a long run source of growth. He said, "India has three decades before it hits the point where the working-age population starts to decline. So that's a long time. This is India's window of opportunity in Asia. It's somewhat only a few other Asian countries have this. For the (next) three decades, it (India) is a source of growth for the global economy and could be even longer. But three decades where India can be almost what China was for the world economy for a while."
"The Indian economy is recovering from the two shocks that started in late 2016: demonetisation and then the kind of implementation issues related to the GST. We see growth recovering. Generally, India is benefiting from good macroeconomic policies; stability-oriented policies as well as some important reforms that have been done in recent years," he said.
Talking about achievement in terms of inflation, he said, "The third (big achievement) from an economist's point of view is the inflation targeting framework that you now have in the Reserve Bank of India, formally adopted in 2016 but informally even earlier. We have seen the benefits of that have lower inflation and inflation expectations."
He further expressed that liberalisation in FDI helps in boosting the growth. He also laid stress in improving the business climate.
PM Modi had promised jobs to the citizens of our country. However, several questions are being raised on his promise as there is negligible change in employment rate. Jobs can't be created overnight. It needs major reforms in the country.
Salgado says, "It takes good policies to create jobs, to create even stronger economic growth. Seven to eight per cent growth is very good. It's one of the best in the world. But for India, which is appropriately aspiring to quickly catch up with the richer advanced countries, you need even stronger growth."