India's Economic Growth 'Much Weaker' Than Expected; GDP Growth Rate Decreases: IMF
GUWAHATI: The International Monetary Fund (IMF) has stated that India’s economic growth is “much weaker” than expected because of “corporate and environmental regulatory uncertainty and lingering weaknesses in some non-bank financial companies.”
Based on a report by the Economic Times, the country’s GDP growth rate decreased to 5 percent in the first quarter of financial year 2019-20. This is the lowest recorded number in over six years.
The global financial institutionIt stated that even though India will be the fastest growing major economy of the world, it will still see a downward revision of 0.3 percent for both 2019 and 2020 as its Gross Domestic Product (GDP) will grow at the rate of 7 percent and 7.2 percent.
It should be noted that the IMF will be monitoring the economic situation of India.
Stating the reason for this downfall, Gerry Rice, IMF spokesperson said that the sharp decline in “manufacturing output and subdued farm sector activity” brought down the country’s GDP growth, according to official data released the previous month.
The previous low in GDP growth was recorded at 4.3 percent in the January-March quarter in 2012-13.