Indian economy likely to bounce back by 8.8% in 2021, says IMF; may surpass China

The International Monetary Fund (IMF) on Tuesday said that India will regain its position as the fastest-growing emerging economy in 2021.

In its latest 'World Economic Outlook' report, IMF said that the Indian economy hit by the coronavirus pandemic is projected to contract by a massive 10.3% in 2020. However, it is most likely to bounce back with an impressive 8.8% growth rate in 2021.

Moreover, if India achieves the projected growth rate, it will regain the position of the fastest-growing emerging economy, surpassing China's projected growth rate of 8.2%.

According to the IMF report, the global growth would contract by 4.4% in 2020 and bounce back to 5.2% next year. United States' economy is projected to contract by 5.8% in 2020 and grow by 3.9% in 2021. Meanwhile, China is the only country among all the major economies to show a positive growth rate of 1.9% in this year.

In its report, IMF said that the revisions of the forecast are particularly large for India, where Gross Domestic Product (GDP) contracted much more severely than expected in the second quarter.

In 2019, India's growth rate was 4.2%.

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