Washington: The International Monetary Fund (IMF) pegged India's economic growth rate in 2013 at 5.9 percent and projected a higher growth of 6.4 percent next year in line with the gradual strengthening of global expansion.
IMF in its update to the World Economic Outlook (WEO) also said the global growth is expected to reach 3.5 percent this year, higher than the estimated 3.2 percent. For China, the IMF report has projected a growth rate of 7.8 percent in 2012, 8.2 percent in 2013 and 8.5 percent in 2014.
In 2011, China had achieved a growth rate of 9.3 percent while India grew by 7.9 percent in the same year. "Growth in emerging market and developing economies is on track to build to 5.5 percent in 2013. Nevertheless, growth is not projected to rebound to the high rates recorded in 2010-11.
"Supportive policies have underpinned much of the recent acceleration in activity in many economies," the IMF said. "But weakness in advanced economies will weigh on external demand, as well as on the terms of trade of commodity exporters, given the assumption of lower commodity prices in 2013 in this Update," it said.
IMF said the space for further policy easing has diminished, while supply bottlenecks and policy uncertainty have hampered growth in some economies for example, Brazil and India.
Observing that economic conditions improved modestly in the third quarter of 2012, with global growth increasing to about three per cent, the IMF report said the main sources of acceleration were emerging market economies, where activity picked up broadly as expected, and the United States, where growth surprised on the upside.