India to remain among fastest growing economies even as IMF cuts growth forecast

The International Monetary Fund (IMF) on Tuesday lowered India’s economic growth forecast for the current fiscal to 7.4% from the 8.2% estimated in April, a report by Livemint said. In its latest World Economic Outlook update, the IMF also lowered the country’s growth forecast for the financial year 2023-24 by 0.8 percentage points to 6.1%.

“…Likewise, the outlook for India has been revised down by 0.8 percentage point, to 7.4 per cent. For India, the revision reflects mainly less favourable external conditions and more rapid policy tightening,” the IMF said on Tuesday.

Despite the lowered forecast, India will remain one of the fastest growing key economies globally in 2022-23 as well as 2023-24, the Livemint report added.

Meanwhile, the IMF also cut the 2022 global domestic product (GDP) estimate to 3.2%, four-tenths of a point lower than the April forecast, and about half the rate seen last year.

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