The Government of India needs to take some steps soon to handle the economic slowdown in the country. The International Monetary Fund has given this advice to the Government of India to increase GDP growth in the country. Describing India's economy as one of the world's growth engines, the international body said that some steps need to be taken soon to overcome the current situation.
The IMF said in its annual review that India's fast-growing economy has experienced a break due to declining consumer demand, declining tax revenue and many other reasons. Ranil Salgado, associated with the IMF's Asia and Pacific Department, said, "India's economy is in a recession after millions of people were taken out of the poverty line."
'Need to take immediate policy action'
He said that immediate action is needed to end the current recession and once again lead India to a higher growth rate. There is a need to take a policy action for this. However the IMF said that the government has limited opportunities to increase spending.
IMF can downgrade India
Only last week, IMF Chief Economist Geeta Gopinath said that due to the slowdown in India's economy, the global organization will have to downgrade it. He said that the World Economic Outlook will be released by the IMF next month.