14:49 GMT04 December 2020
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    New Delhi (Sputnik): Even before the COVID-19 pandemic hit last month, the Indian economy had been slowing down for about two years. From gross domestic product (GDP) growth of over 8 percent in 2018, India’s economy expanded just 4.7 percent in 2019.

    The International Monetary Fund (IMF) on Tuesday reduced its growth projections for India to 1.9 percent for the financial year 2020-21 (April 2020 - March 2021) on account of the COVID-19 pandemic-led slowdown.

    This is a sharp reduction in India’s growth projection by the agency, which just three months back in January projected a growth rate of 5.8 percent for the Indian economy.

    In January, the World Bank had also forecast the Indian economy to grow at 5.8 percent in the financial year 2020-21. But in the latest projections outlined in the institution’s recent South Asia Economic Focus Report, estimates have been lowered to the range of 1.5 percent to 2.8 percent in 2020-21.

    For the financial year 2019-2020, the IMF expects the Indian economy to grow at 4.2 percent. A day ahead of the national budget tabled by Indian Finance Minister Nirmala Sitharaman on 2 February this year, the finance ministry in its economic survey had projected a GDP growth rate of 6 percent to 6.5 percent.

    The IMF has projected that the GDP is likely to see 7.4 percent growth during 2021-22.

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    Economy, GDP, coronavirus, COVID-19, New Delhi, India, International Monetary Fund
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