IMF slashes India's economic growth forecast for FY22 to 9.5%

However, IMF sees India's GDP growing by 8.5%, 160 basis points higher than its earlier projection, in the next financial year (FY23)

The International Monetary Fund (IMF) has sharply scaled down India’s economic growth projection by 300 basis points to 9.5 per cent for the current financial year from 12.5 per cent estimated earlier in April. IMF said the downward revision is owing to “lack of access to vaccines” and possibility of renewed waves of coronavirus.

“Growth prospects in India have been downgraded following the severe second Covid wave during March–May and expected slow recovery in confidence from that setback,” IMF said in the latest edition of its flagship World Economic Outlook (WEO) report, released on Tuesday.

IMF's projections for India in