The International Monetary Fund (IMF) has raised its forecast for India's GDP growth in 2010 to 6.5 per cent - an increase of 0.9 per cent over its April 2009 estimate. The global lender has revised its forecast for 2009 as well to 5.4 per cent from the earlier 4.5 per cent, the latest world economic update indicated.
The global economy is beginning to come out of the unprecedented recession since World War II through a sluggish recovery, the report said.
IMF upgraded its growth forecast for the world economy to 2.5 per cent in 2010, up by 0.6 per cent compared to its previous projection in April. It expects the US, Japan and major emerging economies to improve its growth compared to the earlier predictions.
IMF chief economist Olivier Blanchard said, ''The good news is that the forces pulling the economy down are decreasing in intensity. The bad news is that the forces pulling the economy up are still weak.''
He further added that the world economy is still in recession, the recovery is coming, but it is likely to be a weak recovery. ''We have to continue with the fiscal, monetary, financial policies which we have put in place.''
For 2009, IMF sees a contraction of 1.4 per cent in world economy, marginally higher by 0.1 per cent compared to the April estimate of 1.3 per cent.