Latest GDP figures reflect slow growth rate for India.
International Monetary Fund (IMF) on Thursday said that India's economic growth is "much weaker" than expected due to corporate and environmental regulatory uncertainty and "lingering weakness" in some non-Bank financial companies.
"Again, we will have a fresh set of numbers coming up but the recent economic growth in India is much weaker than expected, mainly due to corporate and environmental regulatory uncertainty and lingering weakness in some non-Bank financial companies and risks to the outlook are tilted to the downside, as we like to say," IMF spokesman Gerry Rice told reporters at a news conference.
On being asked, "Are you suggesting — can you rule out that you will include recession in your baseline?", the IMF spokesperson Gerry Rice said, "You know what I am saying is it is not in our baseline right now and what I am saying is that let’s not get ahead of ourselves, let’s wait and see and the World Economic Outlook will give us a new assessment but let me just also be clear, since you’ve pushed me, I am not predicting or hinting or trying to give you a subliminal message about -- that we are going to announce the recession. I am not saying that, okay?"
The economic growth slowed to a seven-year low to 5 percent in April to June quarter from 8 percent a year ago, as per the government data.
The International Monetary Fund (IMF) has cut its projection for India's economic growth by 0.3 percentage points to 7 percent for the fiscal year 2019-20 owing to the "weaker-than-expected outlook" for the domestic demand the growth is expected to rise to 7.2 percent points in FY21, down by the projected growth rate of 7.5 in the earlier report.
The slowdown was largely due to a sharp dip in the manufacturing sector and agriculture output, said the Ministry of Statistics and Programme Implementation in a statement.
The previous low was recorded at 4.9 per cent in April to June 2012-13. Consumer demand and private investment have weakened amid global trade frictions and dampening business sentiment.
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