The International Monetary Fund (IMF) has lowered India's economic growth forecast for the current fiscal year, which ends March 31, to 9 percent, joining a slew of other agencies that have done so due to fears about the impact of a new coronavirus strain spreading on commercial activity and mobility.
The Washington-based international banking organisation revised its World Economic Outlook on Tuesday, putting the projection for the following fiscal year FY23 (April 2022 to March 2023) at 7.1 percent, down from 9.5 percent in October last year.
In the fiscal year 2020-21, the Indian GDP shrank by 7.3 percent. The IMF's prognosis for the current fiscal year is lower than the government's Central Statistics Office's prediction of 9.2 percent and the Reserve Bank of India's estimate of 9.5 percent. Its prognosis is lower than S&P's and Moody's projections of 9.5 percent and 9.3 percent, respectively, but higher than the World Bank's and Fitch's projections of 8.3 percent and 8.4 percent, respectively.
According to the IMF, India's prospects for 2023 are boosted by predicted increases in credit growth and, as a result, investment and consumption, based on the financial sector's better-than-expected performance.