The number of agencies revising India’s growth estimate is increasing, with the latest being the International Monetary Fund (IMF). The IMF on Monday slashed India’s GDP growth rate to 4.8 per cent for the current fiscal and 5.8 per cent for 2020-21.
The agency also said that a more subdued growth forecast for India accounts for the lion’s share of the downward revisions in global forecast. In its update to the World Economic Outlook, the agency lowered the growth projection for entire Asia from the October forecast.
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 non-bank financial sector and a decline in credit growth.