IMF cuts India’s 2013 economic growth projection to 6.5 percent

Monday, July 16, 2012
Washington: The International Monetary Fund in its review of the World Economic Outlook on Monday cut India's economic growth forecast to 6.5 per cent, down from its April projection of 7.2 per cent. 

The IMF has reduced the global growth forecast for 2012 to 3.5% from 3.6%. For 2013, the growth forecast has been lowered to 3.9%, from 4.1%, indicating that there are harder times ahead for economies.

Notably, the Asian Development Bank (ADB) had last week lowered the growth forecast for India to 6.5% for the current fiscal, from the earlier 7%. According to official projections, Indian economy is expected to grow at 7.6% (+/- 0.25%) in the current fiscal (April-March).

India's economic growth fell to a nine-year low of 6.5% in 2011-12 fiscal. Last month, the World Bank had projected Indian economy to grow at 6.9% in the current fiscal.

India's growth has already been slowing, and fell to 6.5 per cent for the financial year ended March 2012, after hitting a nine-year low of 5.3 per cent in the March quarter. 

The International Monetary Fund also cut its global growth forecast and warned that the outlook could dim further if policymakers in Europe do not act with enough force and speed to quell their region's debt crisis. 
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