India presents upbeat economic growth picture to IMF

Washington, Apr 14 (UNI) India today presented an upbeat picture of its economy to the International Monetary Fund (IMF), describing as ''favourable'' the growth prospects for 2007-08 in the country which recorded GDP growth-rate of over nine per cent during the last two years.

''The savings and investment rates have risen significantly, reinforcing the prospects of sustained high growth,'' Reserve Bank of India Deputy Governor Rakesh Mohan told the International Monetary and Financial Committee, the policy-making body of the IMF.

Dr Mohan, who is leading the Indian delegation at the annual spring meeting of the World Bank-IMF, in the absence of Finance Minister P Chidambaram, said that India remained committed to economic reforms, fiscal prudence and monetary stability.

He said business confidence remained high, though ''some inflationary pressures have emerged, reflecting both demand factors and supply side constraints.'' India had already taken a number of measures on the fiscal, monetary and supply sides, which are expected to keep the inflation rate at around the acceptable range of around 5.5 per cent for 2006-07, he said.

Dr Mohan said, ''the current account situation is manageable, underpinned by robust exports and invisible receipts, and capital flows. The fiscal performance for 2006-07 improved over the previous year and the Budget for 2007-08 aims to continue on the path of fiscal consolidation consistent with the objective of Fiscal Responsibility legislation.'' Turning to the international scene, he urges IMF to ''reorient its interface'' with emerging market economies to help them face several policy challenges, emanating from ''exogenous changes'' in global capital flows.

The lending institution should strengthen its toolkit to suit the specific requirements and to address typical financing needs of emerging markets, Dr Mohan said.

UNI