:: India’s Resilient 7.7% GDP Growth

New York: International Monetary Fund (IMF) Executive Director KV Subramanian responded to former RBI Governor Raghuram Rajan’s comments on Indian GDP growth and expressed confidence in the country’s remarkable economic resilience. He stated that India recorded robust 7.7 percent GDP growth in the first half of the year, projecting a 7 percent growth for the entire financial year.

“The fact that the economy has grown at 7.2 per cent last year and at 7.7 per cent in the first half of this year is telling in itself. And if I look forward to a 7.7 per cent growth in the first half of the year, even with a 6.3 per cent average in the second half of the year, India will grow at 7 per cent this particular financial year. So I think it’s important to keep in mind that during the pandemic there were many commentators who were very negative,” he said.

Reacting to negative statements on India’s GDP growth he expressed confidence that the country will perform well.

“There were people, and if you go and check back on their media statements, you will find that there were people who said that there are millions of Indians that are going to die on the streets. There are people who actually said that the GDP will decline by over 20 per cent for that financial year itself”,’ he added.

“Many people made such statements and I think none of that has come true. So in general, I think because of the sui generis policy that India implemented, India had the self-confidence and the courage of conviction to chart its own path rather than copy-pasting what was done, for instance, during the global financial crisis, where we copy-pasted what the advanced economies did,” the IMF ED said.

Subramanian highlighted a substantial departure from doomsday predictions during the pandemic, countering the severe consequences anticipated by critics. He commended India’s distinctive policy approach, characterized by self-confidence and conviction, in contrast to the copy-pasting strategies observed during the global financial crisis.

The executive director praised India’s economic performance, challenging negative forecasts and applauding the country’s successful navigation of challenges.

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Story by [email protected] (India.com News Desk)