Internal factors play larger role in dragging India’s growth: IMF

The International Monetary Fund (IMF) on Thursday reiterated that internal factors played a much larger role in pulling down India's economic growth, which slumped to a decade-low level of 4.5% in 2012-13, than external ones. The international organization in its ‘World Economic Outlook’ rather pointed that pullback in growth for some emerging market economies since 2012 was mostly attributable to internal factors for relatively large or closed economies such as China, India and Indonesia. The WEO chapter on emerging economies highlighted that in case of India, internal factors reduced growth from 2011 until the third quarter of 2012, but their contribution increased since late 2012. Also, giving credence to the argument that UPA-2 hampered India’s growth story, IMF underscored that the United Progressive Alliance’s rule during the last five years has been marked by multitude of scams, delay in decision making, resulting in a policy paralysis. India's economic growth, which touched 8.9% in 2010-11 slowed down to 6.7% in the following year and touched a decade-low of 4.5% in 2012-13. As for the 2013-14, the Central Statistics Office (CSO) has pegged it at 4.9%. However, as per the projection of ADB and RBI, the growth in the current fiscal is likely to increase to 5.5%.