The International Monetary Fund (IMF) on Monday marginally cut India’s growth projection for 2018 and 2019 to 7.3 per cent and 7.5 per cent respectively. “India’s growth rate is expected to rise from 6.7 per cent in 2017 to 7.3 per cent in 2018 and 7.5 per cent in 2019, as drags from the currency exchange initiative and the introduction of the goods and services tax fade,” said the IMF’s latest World Economic Outlook (WEO) update.
“The projection is 0.1 and 0.3 percentage points lower for 2018 and 2019, respectively, than in the April WEO, reflecting negative effects of higher oil prices on domestic demand and faster than-anticipated monetary policy tightening due to higher expected inflation,” it added.
Despite the cut in growth rate, India will continue to lead among the emerging economies with outperforming its nearest rival China. “Growth in China is projected to moderate from 6.9 per cent in 2017 to 6.6 per cent in 2018 and 6.4 per cent in 2019, as regulatory tightening of the financial sector takes hold and external demand softens,” the report said. Read More