The International Monetary Fund (IMF) has cut India’s Gross Domestic Product (GDP) forecast to 9 per cent for the current financial year (FY) 22. While, in earlier report it had projected a 9.5 per cent GDP growth for India, put the forecast for FY23 at 7.1 per cent.
It has cut its forecast on concerns over the impact of spreading of new variant of coronavirus on business activity and mobility. While, IMF’s recent forecast for the FY 22 is more than the 8.3 per cent projection by the World Bank and 8.4 per cent by Fitch Ratings.
Further, for FY 22, the government’s Central Statistics Office has predicted India’s economy growth at 9.2 per cent. Reserve Bank of India (RBI) along with S & P ratings has estimated at 9.5 percent. Moody’s has projected at 9.3 percent.
However, India’s prospects for 2023 are marked up on expected improvements to credit growth and, subsequently, investment and consumption, building on better-than-anticipated performance of the financial sector, according to the IMF.