The International Monetary Fund reported on Friday that India is navigating an "extremely tough" external environment, projecting growth rates of 6.8 per cent and 6.1 per cent for the current and following fiscal years, respectively. In her virtual conversation with reporters, Choueiri Nada, IMF's India Mission Chief, reaffirmed that India continues to be the lone bright spot in an otherwise bleak picture of the world economy.
Amid the critical economic situation, the government has targeted to achieve an ambitious economic growth rate of 8 per cent for the next fiscal year, compared to the initial target of 6.5 per cent for the current fiscal year
India grew at the fastest pace of any major economy in the July-September quarter but economists said disruptions from the emerging Omicron coronavirus variant risked slowing the recovery, especially given India`s low vaccination rates.
Asia`s third-largest economy has rebounded strongly from last year`s deep pandemic-induced slump, boosted by vaccinations and stronger government spending, economists said. But new COVID-19 variants, a global slowdown and rising manufacturing prices all pose risks to growth.