On Thursday, the International Monetary Fund has said that the economic growth of India is “much weaker than expected” due to environmental and corporate regulatory variability and “lingering weakness” in some non-bank financial sectors. 

The IMF spokesman Gerry Rice told sources at a press conference, “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.”

The economic growth of India has slowed to a seven-year low to 5 percent from April to June from 8 percent a year ago, informs the government data. 

Replying to a query on the recent GDP rate of India, Mr. Rice said that the IMF will monitor the economic situation of India. 

He said, “We will update that assessment in the upcoming world economic outlook.”

The IMF has cut its projection from the economic growth of India by 0.3 percentage points to 7 percent for the financial year 2019-20 owning to “weaker-than-expected outlook” for the domestic need. 

India’s economic growth is likely to rise to 7.2 percent points in the financial year 2020-21, down by the growth rate of 7.5 percent in the last report. 

The economic slowdown was mainly due to a sharp fall in the agriculture and manufacturing sectors, said the Ministry of Statistics and Programme Implementation in a statement.

The previous fall was recorded at 4.9 percent in April to June 2012-13. Most consumers have asked for private investment amid global trade frictions and moderating business sentiment.

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