Friday (September 13): Attributed to the corporate and environmental regulatory uncertainty and lingering weaknesses in some non-bank financial companies, India’s economic growth is “much weaker” than expected, opined IMF.
According to the recently released government data, in the first quarter of 2019-20, India’s GDP growth rate slipped to 5%. It is the lowest in over six years.
However, India will still be the fastest-growing major economy of the world and much ahead of China, IMF (International Monetary Fund) said.
“We will have a fresh set of numbers coming up but the recent economic growth in India is much weaker than expected, mainly due to corporate and environmental regulatory uncertainty and lingering weakness in some non-bank financial companies,” IMF spokesman Gerry Rice told reporters at a news conference here on Thursday.
Deceleration in manufacturing output and subdued farm sector activity are main responsible factors in slowdown.
The IMF in July had projected a slower growth rate for India in 2019 and 2020, a downward revision of 0.3%t for both the years. It had said its GDP will now grow respectively at the rate of 7% and 7.2%, reflecting a weaker-than expected outlook for domestic demand.
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