IMF predicts fall in India's growth rate from 7.6% to 6.6%

The International Monetary Fund has predicted that India�s growth rate may fall by one per cent to 6.6% from its earlier predicted rate of 7.6% under the impact of note ban announced by Prime Minister Narendra Modi.

IMF predicts fall in India

The International Monetary Fund has predicted that India’s growth rate may fall by one per cent to 6.6% from its earlier predicted rate of 7.6% under the impact of note ban announced by Prime  Minister Narendra Modi. The IMF report also said India will also lose the reputation of world’s “fastest growing major economy” to major competitor China during 2016-17.

IMF has taken a very critical view of the demonetisation drive undertaken by the Modi regime and said,

"In India, the growth forecast for the current (2016-17) and next fiscal year were trimmed by one percentage point and 0.4 percentage point, respectively, primarily due to the temporary negative consumption shock induced by cash shortages and payment disruptions associated with the recent currency note withdrawal and exchange initiative."


The IMF report also predicted that the aftershocks of the note ban will affect the economy during next financial year also. IMF has slashed the growth predictions for India for FY18 to 7.2 per cent, cutting it by 0.4 percentage points.

But, IMF’s forecast for FY19 remains unchanged at 7.7 per cent.

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