India’s GDP to expand by 7.2% in 2015-16 - IMF

FXStreet (Mumbai) - The International Monetary Fund (IMF) has raised its forecasts for India’s economic growth, predicting that GDP will expand by 7.2% in the current fiscal year ending March 31, better than the 5.6% expected earlier, confirming its status as one of the fastest growing emerging market economies.

The IMF also predicts 7.5% growth in the South Asian country in 2015/16 in its annual economic report on India, published on Wednesday.

IMF noted, "India’s near-term growth outlook has improved and the balance of risks is now more favourable, helped by increased political certainty, several policy actions, improved business confidence, lower commodity import prices, and reduced external vulnerabilities,"

"High inflation expectations and wide fiscal deficits remain key macroeconomic challenges" together with "supply-side bottlenecks and structural challenges - particularly in the agriculture, mining and power sectors."

"Risks are still tilted to the downside, with the main external risk stemming from surges in global financial market volatility."