Today, the International Monetary Fund, raised growth forecasts for the global economy to 4.4 percent, while retaining projection for India was 8.4 percent for 2011 calendar year multilateral lender Fund International Monetary Fund (IMF), but warned that risks to global economic recovery remains "high". In October last year, the IMF had blocked in the global economic expansion of 4.2 percent in 2011.
The upward revision of growth estimates came on the back "stronger than expected activity in the second half of 2010 and new policy initiatives in the U.S. that will increase the activity over the years, "the IMF said in an update of its World Economic Outlook report.
At the same time, the IMF has maintained its October 2010 forecast for growth in India and China. Although the Indian economy should grow 8.4 percent this year, China is expected to grow by 9.6 percent in the same calendar period.In 2012, India is expected to grow at 8 percent.
The lender also stressed that the global economy is experiencing a "two tier" - which means that developed countries are growing at a slower pace than in emerging markets.
To ensure robust recovery, the IMF said countries should take steps to overcome financial difficulties in the euro area, as well as policies to correct fiscal imbalances.
"These must be complemented by policies to control risks of overheating and to facilitate the external balance of the major emerging economies," the IMF said.
In the multilateral lender, many emerging economies are inflationary pressures, as well as signs of overheating, partly due to the strong economy inflows.World capital is expected to grow by 4.5 percent in 2012, he said.
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