The International Monetary Fund (IMF) has slashed India’s growth rate to 4.8 % for the current financial year, which is expected to rise to 5.8 % in 2020. In October, the IMF had estimated the growth rate at 6.1 %.
“IMF’s World Economic Outlook report estimates India’s growth at 4.8 % in 2019,” said the global money lender in a statement. It projected the country’s growth to improve to 5.8 % in 2020 and 6.5 % in 2021.
The IMF attributed the slash in estimate to the slowdown in demand in the domestic market and stress in the nonbank financial sector.
“The growth markdown largely reflects a downward revision to India’s projection, where domestic demand has slowed more sharply than expected amid stress in the nonbank financial sector and a decline in credit growth,” said the IMF.
It further said: “The downward revision primarily reflects negative surprises to economic activity in a few emerging market economies, notably India, which led to a reassessment of growth prospects over the next two years.”
(With ANI inputs)