IMF cuts India's GDP growth forecast to 7 percent

India will still be the fastest-growing major economy of the world and much ahead of China. IMF cut India's GDP growth to 7 %

Washington: Announcing a major blow to the Indian economy, the International Monetary Fund on Tuesday has cut its projection to the country's economic growth by 0.3 percentage points to 7 per cent for the fiscal year 2019-20.

In the World Economic Update, the International Monetary Fund said, "India's economy is set to grow at 7.0 per cent in 2019, picking up to 7.2 per cent in 2020. The downward revision of 0.3 percentage point for both years reflects a weaker-than-expected outlook for domestic demand."

IMF's Indian-origin Chief Economist Gita Gopinath said that the IMF is revising downward its projection for global growth to 3.2 per cent in 2019 and 3.5 per cent in 2020.

The Washington-based global financial institution said that India will still be the fastest-growing major economy of the world and much ahead of China.