After the International Monetary Fund (IMF) slashed India's growth rate to 4.8 per cent for 2019, which is expected to rise to 5.8 per cent in 2020, BJP leader Gopal Krishna Agarwal said that he has doubts on IMF projections.
"We have doubts on IMF projections, whether they have taken into considerations the impact of Narendra Modi government initiatives like NIP, credit line for MSME and NBFC and mega exercise on Budget, IBC and GST reforms. GDP growth rate has bottomed out and we will see significant growth ahead," Agarwal tweeted.
In another post, he added, India is affected by global growth slowdown and not the causes as IMF narrating. It is protectionist policies followed by counties like the US and Europe with regards to manufacturing and Agri. Significant are US/China trade war, US Iran conflict and lopsided FTAs signed during UPA regime."
He added, "Already the GDP growth rate has bottomed out and in recent future, we will have a very good growth rate and that will be propelled further." In October, the IMF had estimated the growth rate at 6.1 per cent.
"IMF's World Economic Outlook report estimates India's growth at 4.8 per cent in 2019," said the global money lender in a statement.
It projected the country's growth to improve to 5.8 per cent in 2020 and 6.5 per cent in 2021. The IMF attributed the slash in estimate to the slowdown in demand in the domestic market and stress in the nonbank financial sector.
"The growth markdown largely reflects a downward revision to India's projection, where domestic demand has slowed more sharply than expected amid stress in the nonbank financial sector and a decline in credit growth," said the IMF.
Earlier, senior Congress leader P Chidambaram on Tuesday claimed an attack on the world body and its chief economist Gita Gopinath by government ministers was imminent.
He also alleged that the growth figure of 4.8 per cent given by the IMF is after some "window dressing" and he won't be surprised if it goes even lower.
Congress leader Kapil Sibal on Tuesday said the nationwide protests against the amended citizenship law reflected that Prime Minister Narendra Modi and Union Home Minister Amit Shah were a "drag on Indian democracy".
"IMF lowers India's GDP for 2019 to 4.8%. Calls it a drag on the world economy," Sibal tweeted.
"Protests of people, young and old, across India (who can't be recognised by the clothes they wear) Reflect that the duo Modiji and Amit Shah are a drag on Indian Democracy," the Congress leader added.
