The IMF lowered India's economic growth rate from 7.3 percent to 6.1 percent

New delhi date. October 15, 2019, Tuesday

After the World Bank, the International Monetary Fund has lashed out at the Modi government. The IMF has projected India's growth rate to decline during the financial year 2019-20. In the figures released by the IMF, India's growth rate has been reduced to 7.1 percent and 6.1 percent. It had projected 7.3 percent growth in April.

In September this year, the IMF expected economic growth to be seven percent in fiscal year 20-20. It was down 0.30 percent. In this regard, the IMF says that India's economic growth rate is worse than expected due to corporate and regulatory uncertainties and weakness of some non-banking financial institutions.

Growth rate at the lowest level of six years
According to government data, India's economic growth rate has reached the lowest level of six years in the April-June quarter. The figure was eight percent in the corresponding period last year.

The US-China Trade War shocks the global economy
IMF spokesman Gary Rice said the ongoing trade war between the United States and China has shaken the global economy. This is expected to reduce global GDP growth by 0.8 percent next year.

Formerly Moody's Investors Service lowers GDP estimates
Moody's Investors Service has reduced India's GDP estimate for 2019-20 to 5.80% instead of 6.20%. Moody's says the Indian economy is mildly affected. And some of the reasons are chronic effects. The Reserve Bank recently lowered its GDP growth rate forecast to 6.10 percent following a review meeting of its currency policy.

Moody's said in a report that investment slowed down due to sluggish economy. Demand has been affected due to employment generation and financial crisis in rural areas. Moody's said in its report that we expect real growth in GDP and slow recovery in inflation over the next two years.