On Tuesday, the International Monetary Fund (IMF) moderately scaled down the estimates for Indian economic growth for 3 years citing soft growth in recent times and weaker global outlook. The projections are better than RBI's GDP estimates and India is expected to continue to be the fastest growing economy in the world, ahead of China.
IMF estimates that the Indian economy grew by 7.1 percent in FY 19, and expects it to grow at 7.3 percent and 7.5 percent in FY 20 and FY21, respectively. The projections for all the three years are 0.2 percent lower than earlier estimates made in January.
The Reserve Bank of India (RBI) had forecasted the growth at 7.2 percent for the current financial year and 7.4 percent in FY21.
In its flagship publication, World Economic Outlook, released at the annual spring meeting of IMF with the World Bank at Washington, it suggested that the country should continue to undertake economic reforms to create jobs.
Meanwhile, the global economy is expected to slow down more than expected and the world leaders will require to coordinate to take stimulus measures. Lowering its projections by 0.2 percent from that made in the month of January, the IMF said that the global economy will likely grow by 3.3 percent in 2019, the slowest since 2016.
It pointed at the US-China trade war and a potentially disorderly British exit from the European Union as key risks that could bring further cuts.
China is expected to grow at 6.6 percent, 6.3 percent and 6.1 percent for 2018, 2019 and 2020, respectively. Its growth for 2019 and 2020 was cut by 0.1 percent each.