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IMF raises India’s growth forecast to 7.2% for current fiscal.

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India has recovered its economy as IMF (International Monetary Fund) has termed India a ‘Bright spot on the global economic landscape. IMF on 11th March 2015 has raised its forecast to 7.2% for current Fiscal.

The new forecasts have taken into account a revised methodology adopted by India earlier this year for calculating the GDP figures, about which IMF said that the country has “improved the way it measures economic output”. Chief Adviser Arvind Subramanian and RBI Governor Raghuram Rajan have termed new Methodology ‘Puzzling’.

Both Arvind Subramanian and RBI Governor Raghuram Rajan have been in IMF in the past.

Last year IMF had forecasted a growth rate of 5.6% percent for current fiscal and 6.4% for the next. IMF said that India has become the fastest growing economy in the big emerging market and the growth rate would further accelerate to 7.5%.

“Growth numbers are now much higher and the current account deficit is comfortable, in part due to the fall in gold imports and lower oil prices,” IMF Mission Chief for India Paul Cashin said.

To continue the accelerating trend, India needs to re-energize the cycles and accelerate reform, IMF said in its annual assessment report in the country.