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2014-04-04

Internal factors responsible for Fall in India\'s Growth: IMF

International Monetary Fund (IMF) attributed India\\\\\\\'s declining economic growth, which has touched a decade\\\\\\\'s low of 4.5 per cent in 2012-13, to mainly internal factors.

International Monetary Fund (IMF) attributed India's declining economic growth, which has touched a decade's low of 4.5 per cent in 2012-13, to mainly internal factors.

 

"...the pullback in growth for some emerging market economies since 2012 is mostly attributable to internal factors. External factors have generally been much less important compared with internal factors for relatively large or closed economies such as China, India and Indonesia," the IMF said in its World Economic Outlook (WEO).

 

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".

 

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

 

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

 

However, as per the projection of ADB and RBI, the growth in the current fiscal is likely to increase to 5.5 per cent.

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