Washington: The International Monetary Fund (IMF) observed that the Indian economy is on a downward-spiral on account of corporate and environmental regulatory uncertainty in the country.
"We will have a fresh set of numbers coming up but the recent economic growth in India is much weaker than expected, mainly due to corporate and environmental regulatory uncertainty and lingering weakness in some non-bank financial companies," IMF spokesman Gerry Rice told reporters at a news conference here on Thursday.
The risks to the outlook are tilted to the downside, he said.
Recently, the Indian economy registered its lowest quarterly Gross Domestic Product (GDP) growth in six-years. The GDP grew by 5% in April-June 2019.
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Responding to a question on the recent GDP figures of India, Rice said the IMF will monitor the economic situation in the country.
"The GDP at Constant (2011-12) Prices in Q1 of 2019-20 is estimated at Rs 35.85 lakh crore, as against Rs 34.14 lakh crore in Q1 of 2018-19, showing a growth rate of 5 per cent," the National Statistical Office (NSO) said in a statement.
"We will update that assessment in the upcoming world economic outlook," IMF spokesman said.
The International Monetary Fund (IMF) in July projected a slower growth rate for India in 2019 and 2020, a downward revision of 0.3 per cent for both the years, saying its Gross Domestic Product (GDP) will now grow respectively at the rate of 7 per cent and 7.2 per cent, reflecting a weaker-than expected outlook for domestic demand.
