New Delhi: At a time when the GDP of the country is as low as 5 per cent, the International Monetary Fund (IMF) on Monday slashed India’s growth estimate for the current fiscal to 4.8 per cent. This prediction of the IMF which it called ‘negative surprises’ will darken the economic picture of the country from the rosy 7.5 per cent made this time last year. Also Read - India's Growth Rate Didn't Match Increase in Jobs: IMF
The IMF said the latest cut follows a downward trend which reduced India’s growth to 6.1 per cent in October. Also Read - Led by India, South Asia Moving Towards Becoming Center of Global Growth: IMF
Holding a press conference in Davos, the IMF’s World Economic Outlook (WEO) blamed country’s economic slowdown for a ‘lion’s share’of the 0.1 per cent cut in the global economic growth projections for last year to 2.9 per cent and to 3.3 per cent for the current year from those made in October.
The IMF also slashed the global economic projections for 2021 by 0.2 per cent to 3.4 per cent. “A more subdued growth forecast for India accounts for the lion’s share of the downward revisions,” the IMF said in a statement.
It further stated that India’s growth rate in the next fiscal year is expected to increase by 1 per cent to 5.8 per cent.
However, the IMF projects India to be the second-fastest-growing major economy this year and the next, behind China’s 6.1 this year and 6.4 next year.
The IMF said the country is expected to get the top spot in 2021 with a growth rate of 6.5 per cent to China’s 5.8 per cent.
Apart from IMF, the World Bank projected India’s growth rate to be 5 per cent for the current fiscal, while the UN had estimated it at 5.7 per cent.
(With inputs from IANS)