The Indian economy is estimated to grow by 7.4% in current fiscal (2022-23). This is sharply slower than the International Monetary Fund's (IMF's) earlier forecast of 8.2% due to the impact of war in Ukraine, surging inflationary pressures and rapid interest rate hikes, Trend reports citing TOI.
In its latest World Economic Outlook update, the IMF on Tuesday also lowered the growth projections for the global economy. It pointed out that the stalling of growth in the US, China and the euro area has major consequences for global outlook.
It said that for emerging markets and developing economies, the negative revisions to growth in 2022-23 reflect mainly the sharp slowdown of China's economy and the moderation in India's economic growth.
"The revision in emerging and developing Asia is correspondingly large, at 0.8 percentage points in the baseline for 2022. This revision includes a 1.1-percentage-point downgrade to growth in China, to 3.3% (the lowest growth in more than four decades, excluding the initial Covid crisis in 2020), owing primarily to the aforementioned Covid outbreaks and lockdowns," according to the IMF document.
"Likewise, the outlook for India has been revised down by 0.8 percentage points to 7.4%. For India, the revision reflects mainly less favourable external conditions and more rapid policy tightening," said the IMF update.