The International Monetary Fund has welcomed the Indian government’s announcement of free vaccines for all and free rations for the poor, but has also hinted at reducing the country’s growth forecast in the wake of the second wave of COVID-19. Gerry Rice, a member of the IMF’s communications department, said this at an online media briefing. Responding to a question, he said, the IMF welcomes the Government of India’s announcement of a vaccine for all. At the same time, we also appreciate the additional support that the society has to pay for the epidemic and the common people get relief.
On the economy, Mr. Rice said the second wave of COVID-19 and associated restrictions indicate a sharp decline in the Indian economy. He said, we will revise India’s growth forecast in the update of the world economic scenario to be released next month.
The IMF said in April that India’s growth forecast for the fiscal year 2021-22 is expected to be 12.5 percent. After that the Reserve Bank of India has also reduced the country’s growth forecast to 9.5 percent.
Describing India as important to the global economy, Mr. Rice said that India has a large share in the global and regional Gross Domestic Product (GDP), so the impact of India’s development and economic scenario is also wide. It has strong business links and global supply chains, especially with countries in South Asia. Because of this, it will also have an effect on other countries.