IMF praised India’s economic reforms despite covid-19, estimated economic growth of 9.5 percent in 2021-22.
IMF i.e. International Monetary Fund has praised India’s economic and labor reforms to continue the process of privatization despite Covid-19.
The IMF has said in the report released by its members that the uncertainties in economic activity due to the pandemic remain the same. India still needs to be careful.
In its Article IV advisory report, the IMF said that the continued negative impact of COVID-19 on investment and other factors could prolong the economic recovery.
On the status of the Government of India’s efforts to deal with Covid-19, the IMF made a statement saying that to recover from Kovid-19, there were rapid enough efforts by India.
This includes financial support from the government, including support to the economy, monetary policy easing, liquidity provision, and adjustments to the financial sector and regulatory policies.
Despite the pandemic, officials have continued to implement structural reforms, including labor reforms and a privatization plan.
The IMF has projected India’s economic growth to be 9.5 percent in the financial year 2021-22 and 8.5 percent in 2022-23. Inflation is estimated at 5.6 percent in 2021-22 amidst higher price pressures.
In a statement, the IMF said that, due to the uncertainties of the pandemic, economic reforms have been affected.
The impact of Covid-19 on investment, human resources, and other factors could affect economic recovery in the long run. At the same time, it can also affect medium-term growth.
Rapid vaccination and better medical measures can help limit the spread and impact of the pandemic.
In addition, the successful implementation of comprehensive structural reforms can enhance India’s growth potential.
Coal production and power crisis.
Whether there will be a power crisis in the country due to a shortage of coal in the future also will depend entirely on whether Coal India Limited (CIL) achieves its coal production targets or not.
After consultation with the government, the company has set a target of producing 74 million tonnes of coal during the current financial year 2021-22 and 100 million tonnes by 2023-24.