World acknowledging Indian economy a template to follow: BJP

New Delhi: With the IMF raising India's GDP projection by 0.2 per cent to 6.3 per cent, the BJP asserted on Wednesday that it is an acceptance of the Indian economy's strength and fast growth amid slowing global economy.

BJP national spokesperson Syed Zafar Islam told a press conference that global institutions have "acknowledged" that India's leadership has been been able to make its handling of the economy a template for the world.

"Modinomics is being acknowledged globally," he said, praising Prime Minister Narendra Modi's handling of economy.

"The world has acknowledged that the Indian leadership not only understands the economy but is also making the Indian economy a template for the world to follow," he said.

He said the world's economy has historically grown at 3.8 per cent but is now projected to go down to 2.9-3 per cent while India's has been raised. "It is growing at a bullet's pace. It used to be called a part of fragile five in 2014 but its strength is now well-accepted," he said.

Islam said policy and structural reforms, including initiatives like 'aatmanirbhar Bharat', have been behind the robustness of Indian economy.

While urban consumption has been strong, rural consumption is now also growing, he said, citing the growth in the sales of two-wheelers and tractors. Various other metrics like air traffic and electricity consumption have been doing well, he said, adding that tax collection has also grown strongly.

Citing PMI figures, he said India economy is robust and the fastest growing major economy in the world.

"Pick any high-frequency data, and you will find only one news that the Indian economy is soaring. Today, the Indian economy is not just the fastest-growing economy, but also the most robust in the world," he said.

Taking a swipe at the opposition, he said some people have been making misleading claiming about the state of economy but the IMF forecast has shown the true picture.

The direction of inflation is downwards while Modi has also successfully addressed gaps in economy, he said.

The International Monetary Fund (IMF) on Tuesday raised India's GDP projection marginally by 0.2 per cent to 6.3 per cent even as it slashed the global growth forecast to three per cent.

"Powered by the strength and skills of our people, India is a global bright spot, a powerhouse of growth and innovation. We will continue to strengthen our journey towards a prosperous India, further boosting our reforms trajectory," the prime minister said on 'X', citing the IMF figures.

Powered by the strength and skills of our people, India is a global bright spot, a powerhouse of growth and innovation. We will continue to strengthen our journey towards a prosperous India, further boosting our reforms trajectory. https://t.co/CvHw4epjoZ

— Narendra Modi (@narendramodi) October 10, 2023

"Growth in India is projected to remain strong, at 6.3 per cent in both 2023 and 2024, with an upward revision of 0.2 percentage point for 2023, reflecting stronger-than-expected consumption during April-June," the IMF's 'World Economic Outlook' said.

India's growth is projected to be higher than China's, the second-largest economy in the world.