IMF cuts India's FY23 GDP forecast to 6.8%, flags global inflation crisis

Slashes it by 60 bps; says worst yet to come for world

The International Monetary Fund (IMF), in its latest World Economic Outlook report, cut its forecast for India’s gross domestic product (GDP) growth in financial year 2022-23 (FY23) by 60 basis points (bps) to 6.8 per cent, warning of a long and tough economic winter.

“The outlook for India is for growth of 6.8 per cent in 2022, a 0.6 percentage point downgrade since the July forecast, reflecting a weaker-than-expected outturn in the second quarter (April-June) and more subdued external demand,” the IMF said.

In IMF parlance, 2022 would denote FY23 in case a nation follows a fiscal year starting