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IMF lowers India’s growth forecast for FY’20

According to the latest annual growth forecast of India for FY’20 by the International Monetary Fund, the economy is expected to grow at 7%, 0.3% point slower than IMF’s earlier projection in April. This has been attributed to slowdown in consumption & investment demand, which is seen as a manifestation of uncertainties associated with the general elections in India. The tough borrowing conditions for small and medium enterprises also slowed down the pace of economic recovery.

“However, we expect some of that to improve in the near term. That, along with a more accommodative monetary policy and fiscal policy of the Indian government, should remove some of the downside risks,” remarked IMF chief economist Gita Gopinath.