Highlighting their optimism about India’s growth story, International Monetary Fund (IMF) has said that “We are optimistic about India's prospects and view the economy being on an increasingly stable footing.” Though it has also stressed that India needs to further progress on the long standing supply bottlenecks for achieving faster and more inclusive growth,
IMF has often said that India is among the few bright spots in an otherwise gloomier world economy. In its latest report published ahead of the G20 Summit, the Washington-based multilateral institution said India's growth will benefit from recent policy reforms, a consequent pickup in investment, and lower commodity prices.
Deputy Director of IMF's Asia and Pacific Department, Kalpana Kochhar has said that there are many aspects where the India is growing such as Inflation has declined, the current account deficit is in check, international reserves are ample and economic growth is picking up. But stated that further progress is needed to relax long-standing supply bottlenecks (especially in the energy, mining and power sectors) and achieve faster and more inclusive growth. While pointing out the various positive developments, Kochhar said a number of important economic and structural reforms have also been initiated including diesel price deregulation, steps to create more flexible labour markets (particularly at the state level), coal sector reforms, adoption of the flexible inflation targeting framework by the RBI, increasing infrastructure spending, and enhancing financial inclusion.
Recently IMF had said that India remains one of the fastest growing economies in the world, though it marginally lowered India’s growth rate to 7.3 percent this year from the previous estimation of 7.5 percent in the July 2015 World Economic Outlook (WEO) Update, stating the reason of external environment and stated that the external demand has weakened hence Indian exports tends to suffer, which is the negative force pushing down the growth forecast for India.