Business News, Nation, (New Delhi), July 24:-The International Monetary Fund (IMF) has cut its projection for India’s economic growth by 0.3 percentage point to 7 per cent for 2019-20 due to subdued domestic demand.
For the next financial year, the projection was also cut by 0.3 percentage point to 7.2 per cent.
“India’s economy is set to grow at 7.0 percent in 2019, picking up to 7.2 percent in 2020. The downward revision of 0.3 percentage point for both years reflects a weaker-than expected outlook for domestic demand,” IMF said in its update on its flagship report — the World Economic Outlook on Tuesday.
IMF did not give details of muted domestic demand, but various sectors of the economy have been witnessing a slowdown, particularly auto.
For instance, retail vehicle sales across the country fell by 5.4 per cent in June year-on-year to 1.64 million units, according to data by the industry body – the Federation of Automobile Dealers Associations (FADA).
The seven per cent GDP growth forecast for the current financial year is in line with the finance ministry’s projection.
Even then, India will continue to be the fastest growing large economy in the world. The closest competitor, in terms of growth – China was projected to grow by 6.2 per cent in 2019 and 6 per cent in 2020 by IMF.
-(NAV, Inputs: Agencies)