The International Monetary Fund (IMF) on Tuesday, January 26, projected an 11.5% growth rate for the Indian economy in 2021. With this, India will emerge as the only key nation to record double-digit growth and reclaim the status of the world's fastest-growing major economy, the report by IMF mentioned.
The body, in its World Economic Outlook report for January, projected that India's economy contracted by 8% in 2020. The figure is a positive revision of its estimate in October 2020, when it had predicted that the growth rate will contract by 10.3%.
"India will be the only major economy to register double-digit growth this year, followed by China, which is expected to grow by 8.1% in 2021," IMF report stated.
In the report, IMF estimated a global contraction of 3.5% in 2020, showing stronger-than-expected momentum in the second half of 2020. It also predicted global growth of 5.5% in 2021, citing expectations of a vaccine-powered growth in the year.
Earlier on Tuesday, a separate report released by the United Nations Department of Economic and Social Affairs estimated India's economy contract by 9.6% in 2020, while it is projected to rise at 7.3% in 2021.
India's Gross Domestic Product growth rate had shrunk by 7.5% in the second quarter (July-September), after contracting by an unprecedented 23.9% in the first three month period (April-June) of the financial year.
The Reserve Bank of India has predicted the India economy to register positive growth in the third quarter (October-December).