The International Monetary Fund (IMF) has backed India’s lockdown decision as ‘wise’ despite economic slump to contain the COVID-19 virus spread. Changyong Rhee, the organisation”s director of the Asia and Pacific Department, said “India entered the pandemic turmoil in the midst of a credit crunch induced slowdown and its recovery prospect becomes more uncertain.”
He added, “can cause a drop in economic activity (and) growth rate will go down definitely, but I think that is a very wise and important decision to minimise the long-term cost of this disease spread.” As per IMF’s revised India”s growth rate projection for the current fiscal year to 1.9 per cent from the 5.8 per cent made in January, which was lower than the 7 per cent made in October.
