GDP of India in FY 17 has been reduced by the International Monetary Fund especially due to shortage of cash and disruption in business operation due to demonetization. The growth rate has been forecasted at around 6.6% from well above 7%. The international institution was very clear that the disruption has hampered the growth rate but also expected that it may yield a result in the medium term for the country.
However, this was not the only thing that was considered for the GDP of India in FY 17. The US Policies, international market, and other comparative and relative studies have resulted in the reduced rate for the South Asian country. However, the IMF has predicted that the country would continue to grow at 7.2% in FY 18 once the adverse impact of the demonetization has been written off. The institution also urged the Government to take necessary measures to address the shortage of cash and business operations in the country.
Read More From Us
However, the board was really impressed with the robust and strong policies of the country to absorb internal and external shockwaves in the economy. More monitoring has been urged on the same to curb any chance of further financial crisis. However, government reforms, bad loans of the state run banks and the Non-Performing Assets were also discussed on the same.
India is one of the biggest markets in the world at the present day and a strong policy would safeguard the interest of Indian economy for the longer term, believes the experts. The GDP of India in FY 17 is not so crucial at this juncture as the numbers could change depending on the circumstances.