IMF cuts India's growth rate to 4.8 pc for FY19-20

The International Monetary Fund (IMF) has slashed India's growth rate to 4.8 per cent for the current financial year, which is expected to rise to 5.8 per cent in 2020.

In October, the IMF had estimated the growth rate at 6.1 per cent.

"IMF's World Economic Outlook report estimates India's growth at 4.8 per cent in 2019," said the global money lender in a statement.

It projected the country's growth to improve to 5.8 per cent in 2020 and 6.5 per cent in 2021.

The IMF attributed the slash in estimate to the slowdown in demand in the domestic market and stress in the nonbank financial sector.

"The growth markdown largely reflects a downward revision to India's projection, where domestic demand has slowed more sharply than expected amid stress in the nonbank financial sector and a decline in credit growth," said the IMF.

It further said: "The downward revision primarily reflects negative surprises to economic activity in a few emerging market economies, notably India, which led to a reassessment of growth prospects over the next two years.