(FE)
The International Monetary Fund (IMF) on Tuesday sharply revised downward India’s GDP growth projections by 90 bps to 6.1% for FY20 and by 20 bps to 7% for FY21. On Sunday, the World Bank had slashed India FY20 growth estimate to 6% from its original call of 7.5%.
“In India, growth softened in 2019 (FY20) as corporate and environmental regulatory uncertainty, together with concerns about the health of the non-bank financial sector, weighed on demand,” the fund bank said ahead of the IMF and World Bank annual meetings this week in Washington. “Growth will be supported by the lagged effects of monetary policy easing, a reduction in corporate income tax rates, recent measures to address corporate and environmental regulatory uncertainty, and government programmes to support rural consumption.” the Fund said.
