The IMF's forecast for India is a huge downward revision from its previous prediction in June.
On a day when data on China's growth, with its economy growing at 4.9 per cent on-year in the third quarter, was released, economists highlighted the projections for other Asian economies. China sustained its rebound from bruising virus lockdowns and moving closer to pre-pandemic levels, official data showed.
Bangladesh and China may lead the recovery path while India may be the worst performing in Asia, according to the International Monetary Fund's (IMF) projection in terms of real Gross Domestic Product (GDP) for the full year.
India economy, severely hit by the coronavirus pandemic and is projected to contract by 10.3 per cent this year, is set to drop below Bangladesh, Vietnam, China, Nepal, Pakistan and five other Asian economies, as per the IMF's projections.
Kaushik Basu, former Chief Economic Adviser to the Union Finance Ministry, sounded a warning for the government, along with a data table, "Even a few years ago none could have imagined India's economy being where it is. A part of this is caused by Covid, but only a part-see Table. Lessons: Don't be in data denial. Mistakes happen-admit & take corrective action. Use the talent & expertise available in the country," the noted economist tweeted today.
However, India, Asia's third-largest economy, is likely to bounce back with an impressive 8.8 per cent growth rate in 2021, thus regaining the position of the fastest growing emerging economy, surpassing China's projected growth rate of 8.2 per cent, the IMF said.