The International Monetary Fund (IMF) has reduced India’s GDP growth rate for the current financial year and next fiscal year. The IMF has recently taken this step, citing ageing rates and weak outlook.
However, the IMF believes that after these elections, there may be a slight difference in these results. Along with this, he said that India has been seeing an increase in GDP and now it is the world’s fastest growing economy.
The International Monetary Fund (IMF) said that some amendments in recent data by the Indian government indicate that there is some softness in progress. Because of this, the IMF has to make changes in its estimation. Prior to this, the Reserve Bank and Asian Development Bank also reduced India’s estimates.
The IMF has reduced India’s growth rate for 2019-20 to 0.1 per cent and 0.2 per cent for 2020-21. India’s growth rate, which was released before the IMF and World Bank’s annual meeting, is 7.1 per cent, while China’s growth rate is 6.6 per cent. IMF estimates that China’s growth rate will be 6.3 per cent in 2019-20 and 6.1 per cent in 2020.
A report says that in 2019-20 India’s growth rate will increase and it will reach 7.3 per cent, while in 2020 it will be 7.5 per cent. It has been said in the report that in the medium term, India’s growth rate will stand at 7.75 per cent. Along with that, Chief Economist of the International Monetary Fund (IMF), Geeta Gopinath wrote in a blog that during the first half of 2019, 70 per cent of the world’s economies has been estimated to be sluggish.
The growing trade tension between the US-China, the need to curtail credit in China, widespread economic tension in Argentina and Turkey, barriers to the German auto sector have worked together to make the world economy sluggish.