IMF cuts India's GDP growth rate to 7% due to subdued domestic demand

IMF says decision driven by subdued domestic demand; Country remains fastest growing large economy

The International Monetary Fund (IMF) has cut  its projection for India’s economic growth by 0.3 percentage point to 7 per cent for 2019-20 due to subdued  domestic demand. For the next financial year, the projection was also cut by 0.3 percentage point to 7.2 per cent.

“India’s economy is set to grow at 7.0 percent in 2019, picking up to 7.2 percent in 2020. The downward revision of 0.3 percentage point for both years reflects a weaker-than expected outlook for domestic demand,” IMF said in its update on its flagship report -- the World Economic Outlook on Tuesday.

IMF did