Government trashes International Monetary Fund's growth forecast.

NEW DELHI: Policymakers on Wednesday trashed the International Monetary Fund's (IMF) growth projections, which estimated that the Indian economy will expand at 4.25% in 2013.

"I reject the IMF numbers. The Indian economy is seeing turnaround both in terms of growth in manufacturing and domestic demand and a buoyancy in exports," commerce and industry minister Anand Sharma said in a statement.

Planning Commission too termed the estimates as "pessimistic" and said Indian economy will grow at a rate higher than 5% this financial year. Based on market prices, the multilateral body has projected 3.75% growth this year, which is amongst the slowest pace of expansion in the developing world.

India's GDP growth slowed to 5% in 2012-13 and the government and RBI expect 5-5 .5% growth during the current financial year, although private economists have slashed their forecasts to around 4.5-5 %.

Sharma said due to increase in exports and decline in imports, trade deficit has reduced significantly. "It is encouraging to see that trade deficit is also progressively coming down," said the minister, who is in Brunei for the India-Asean Summit.

Planning Commission deputy chairman Montek Singh Ahluwalia has refused to comment on IMF forecast but said: "I expect to see recovery in the coming quarters. Exactly how much it will produce is difficult to predict right now. But we are definitely on a turnaround path."

Source : timesofindia.indiatimes.com