India Economic Growth: Amidst the cut in the growth rate, IMF said a matter of happiness for India, but gave this advice

International Desk:
Business News: International Monetary Fund (IMF) Chief Economist Pierre Oliver Gorinches said on Tuesday that India's economy is performing very well but it still needs to take more monetary tightening.  The IMF has reduced India's economic growth forecast for the year 2022 to 6.8 percent.  Earlier in July, the IMF had projected India's growth rate to be 7.4 percent.
    In the report released on Tuesday regarding the global economic outlook, the IMF said that India's growth rate this year is likely to remain at 6.8 percent.  This is 0.6 percent lower than the previous estimate in July.  This indicates a below-expected economic activity in the second quarter and a slowdown in external demand.
    After the release of the IMF report, Gorinches said, India is performing very well in 2022 and it is expected to grow strongly in 2023 as well.  We expect its growth rate to be 6.8 percent this year and 6.1 percent next year.
    Along with this, he said that inflation in India still remains above the target of the central bank.  We estimate India's inflation to be 6.9 percent in the financial year 2022-23, he said.  Next year it may fall to 5.1 percent.  In such a situation, at the policy level, we feel that strictness in fiscal and monetary policy should continue.  On this occasion, the head of the research department of the Monetary Fund, Daniel Leigh, said that additional monetary tightening will be needed to bring down inflation.
    The report said that India's growth rate was 8.7 percent last year due to the shock of Kovid.  The IMF growth forecast for India this year was slightly higher than the World Bank's 6.5 per cent released last week.  The IMF said the global economy would grow at only 3.2 percent this year and slow to 2.7 percent next year, affected by inflation, the outcome of the Ukraine war and the impact of the Covid pandemic.