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IMF retains India FY19 growth outlook at 7.3%

IMF retains India FY19 growth outlook at 7.3%

New Delhi: The International Monetary Fund (IMF) has retained its India growth forecast for the current year and marginally pared it for next fiscal, citing the drag from higher crude prices and tightening of the global financial situation. But it will remain the fastest-growing major economy, well ahead of China, it said.

In its latest World Economic Outlook, the IMF said India will grow 7.3% in FY19 and 7.4% in FY20. It had in January forecast FY20 growth at 7.5%. China is forecast to grow 6.6% and 6.2% in 2018 and 2019, respectively.

The Indian economy grew 6.7% in FY18.

“This acceleration reflects a rebound from transitory shocks (the currency exchange initiative and implementation of the national goods and services tax), with strengthening investment and robust private consumption,” the IMF said. The forecast for investment growth in FY19 is weaker than in April, despite higher capital spending.