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India facing slowdown: IMF

In its report which was released Monday, the IMF Directors noted that in the first half of 2019, a combination of factors led to subdued economic growth in India. “The issue in India currently is the growth slowdown. We still believe it is mostly cyclical, not structural… because of the financial sector issues, we think, the recovery will be not as quickly quick as we thought earlier. That’s the main issue,” Ranil Salgado, Mission Chief for India in the IMF Asia and Pacific Department stated.

This has been attributed to the abrupt reduction in non-bank financial companies’ (NBFC) credit expansion and the associated broad-based tightening of credit conditions.