India will be the world's fastest growing economy for the second consecutive year in 2016 at 7.5%, IMF on Thursday said, even as it lowered its current year global economy growth forecast to 3.3%. In its World Economic Outlook Update released in Washington, IMF retained India's growth projection for current year at 7.5% which will be higher than China's 6.8%. It forecast a growth rate of 7.5% for India in 2016 as well, as against China's 6.3%.
In it's World Economic Outlook Update released in Washington, IMF retained India's growth projection for current year at 7.5% which will be higher than China's 6.8%. China was the fastest growing economy in 2014 at 7.4% as against India's 7.3%, as per the IMF data. IMF's growth projection for India, however, is lower than the estimates of the Indian Finance Ministry and the Reserve Bank of India.
The Finance Ministry expects GDP growth to be 8-8.5% in 2015-16, while the Reserve Bank of India has estimated it at 7.6%.IMF has retained the projection made earlier in April, while it has lowered global growth forecast from 3.5% to 3.3% for 2015. The global growth projection for 2016 has been retained at 3.8%.
In emerging market economies, it said the continued growth slowdown reflects several factors, including lower commodity prices and tighter external financial conditions, structural bottlenecks, rebalancing in China, and economic distress related to geopolitical factors.
A rebound in activity in a number of distressed economies is expected to result in a pickup in growth in 2016. Growth in emerging market and developing economies has been estimated at 4.2% in 2015, down 0.1% from the projection made April.
CAN SWADESHI BE COMPATIBLE WITH GLOBALIZATION ? Yes, it is possible and China has PROVED IT POSSIBLE . If one looks at the history of India and China, there are many Economic Parallels; Both are ancient civilizations which passed through the Iron Age, Bronze age.Both were INNOVATIVE ECONOMIES and in the beginning of the 17th century, they were the two ECONOMIC SUPERPOWERS.
But the European Invasion of India and China tried their best to Destroy this Self Sufficiency. They needed a Cheap Source of Raw Material and a Ready Made Market. The SWADESHI call of Gurudeb Robi Thakur was a PROTEST both against the PARTITION of Bengal and the impovershment of its Craftsmen, who were the greatest hit.
Post 1947, both China and India were IMPOVERSHED economies. Nehruvian Socialism Destroyed India, Maoism destroyed China. Post 1990's both opted for liberalisation. China opted a MANUFACTURING MODEL, today it manufactures everything from Kitchen Knives, to Dolls and Balls to Computers to Rockets and other military hardware. On the other hand , India's growth was mainly fueled by the SERVICE SECTOR, mainly IT .
Today , China is a SURPLUS ECONOMY with trillions of dollars in reserves, they are BUYING up the world. If India has to STAY RELEVANT and Beat China, the slogans of MADE IN INDIA, MAKE IN INDIA and as the RBI governor added MAKE FOR INDIA has to be our Mantras and India has the USP of DEMOCRACY and DEMOGRAPHY , which can make this happen........Sudipta Barat