India's GDP growth premium over EMs to hit 7-year low of 1.1%: IMF

In the past two years, GDP growth in India is down nearly 220 basis points (bps, or bips), against growth deceleration of 85 bips in EMs

The relative attractiveness of India’s growth story is fast fading as the pace of economic slowdown in India exceeds the rest of the world (RoW). 

According to the latest data from the International Monetary Fund, India’s growth premium over the emerging economies (EMs) will hit a seven-year low in 2019-20 (FY20) and an 18-year low against the developed economy, including the US.

India’s gross domestic product (GDP) at constant prices is expected to grow by 5 per cent in FY20, against 3.9 per cent growth in EMs in the calendar year (CY) 2019. Given this, India’s growth premium over EMs in FY20