At 13%, Economist Intelligence Unit Pegs India's Growth In 2021 Higher Than IMF

The Economist Intelligence Unit (EIU) has pegged India's economic growth for the year 2021 at 13 per cent, higher than the growth rate forecast by the International Monetary Fund (IMF). Recently, the IMF projected a 12.5 per cent growth rate for the country in the financial year 2021-22, stronger than that of China. The Economist has projected India's growth rate for 2021, higher than any other major economy in the world, including the US. The growth rate for the US is projected at 5.5 per cent by the EIU. Additionally, the Economist Intelligence Unit pegged India's growth rate for the current year higher than the Reserve Bank of India's Monetary Policy Committee as well. (Also Read: RBI Monetary Policy Highlights: Repo Rate Steady, Growth Projection Retained At 10.5% )

In its first bi-monthly monetary policy review for the new financial year 2021-22, RBI Governor Shaktikanta Das-led monetary policy committee maintained the gross domestic product (GDP) growth forecast at 10.5 per cent in the current fiscal.

In 2020, India's economy contracted by a record eight per cent, said the International Monetary Fund, projecting a 12.5 per cent growth rate for the country in 2021. Whereas, China was the only major economy in the world to register a positive growth rate of 2.3 per cent in 2020. China's economy is expected to grow by 8.6 per cent in 2021 and by 5.6 per cent in 2022. (Also Read: World Bank Raises India's Growth Forecast To 10.1% From 5.4% For 2021-22 )

Meanwhile, the World Bank also increased India's growth forecast to 10.1 per cent for the current fiscal 2021-22, compared to the earlier estimate of 5.4 per cent. The World Bank stated in its recent report 'South Asia Economic Focus' that given the major uncertainty pertaining to both epidemiological and policy developments, the real GDP growth can range between 7.5 per cent-12.5 per cent, depending upon on vaccination drive, and whether new lockdown-related restrictions will be required. 

The economy snapped out of technical recession in the third quarter of the financial year 2020-21, after two consecutive quarters of de-growth. In the October-December quarter of fiscal 2020-21, the GDP growth expanded by 0.4 per cent, as against a contraction of 7.3 per cent in the September quarter.