India comprises just 3.2 per cent of the global economy at Market Exchange Rates, and a 1 per cent or so downgrade in its growth may appear too insignificant to impact global growth
Central & state govts combined expenditure exceeded revenues by around 7.5% of GDP in 2019
Kristalina Georgieva said India had undertaken some important reforms that over the longer term would be beneficial for the country, but they do have some short-term impact
IMF spokesman Gerry Rice added that China has enough fiscal space to support its economy though the crisis
The IMF said that global growth would have been 0.5 percentage point lower without last year's actions
Just about a month old and 2020 is turning out to be an interesting, even momentous, year for businesses in India
Javadekar also slammed critics of the National Popular Register exercise, saying that it was done during the Congress-led govt as well
The IMF projection, 1.3 percentage point lower than its earlier estimates, is less than the five per cent projected by the official advance estimates
"I suppose we must prepare ourselves for an attack by government ministers on the IMF and Dr Gita Gopinath," Chidambaram said.
Georgieva, who served as the World Bank's chief executive officer before moving to the IMF in October, has made reversing inequalities one of her top priorities
IMF also said there were weaknesses in the deflation method used to derive value added. Deflators are used to convert GDP at current prices to constant prices
The Budget projected the Centre's fiscal deficit to come down to 3.3 per cent of the country's gross domestic product (GDP) in 2019-20 against 3.4 per cent a year ago
The IMF has some useful suggestions
This comes days after IMF Chief Economist Gita Gopinath cautioned the Fund may revise India's growth forecast 'significant downward'
Despite some improvement in reported fiscal deficits, debt as a share of GDP remains little changed over the past decade partly due to increases in off-budget financing, IMF said
IMF's projection is much higher than those by most agencies. RBI's latest projection pegged growth at 5 per cent, Standard & Poor's at 5.1 per cent, Moody's at 4.9 per cent and Fitch' at 4.6 per cent.
Government needs a credible consolidation path to rein in debt, including reducing subsidies and boosting the tax base, says IMF.
"India is now in the midst of a significant economic slowdown," Salgado told reporters
India's consolidated deficit (the Centre and states combined) is the highest among G20 nations, she added. "So, it's not a free lunch and this has to be very carefully managed," she said
A fall in consumption, lack of private investments and sluggish exports are being blamed for a slower GDP growth