Corporate and environmental "regulatory uncertainty" and "lingering weakness" in some non-bank financial companies(NBFC) should see India’s economic growth “much weaker than expected”, according to the International Monetary Fund (IMF).
IMF spokesperson Gerry Rice told mediapersons in Washington, “There was a question on India and its growth rate… and I want to take it… we will have a fresh set of numbers coming up, but the recent economic growth in India is much weaker than expected.”
The risks to the outlook were "tilted to the downside".
In July, IMF projected a slower growth rate for India in 2019 and 2020, a downward revision of 0.3 per cent for both the years. It said Gross Domestic Product (GDP) was expected to now grow at 7 per cent and 7.2 per cent, respectively.
Yet, India would still be the fastest-growing major economy of the world and much ahead of China. The GDP growth rate had slipped to 5 per cent in the first quarter of 2019-20, the lowest in over six years.