IMF pegs India’s growth in 2012 at 6.9%

The IMF (International Monetary Fund) has pegged growth in India’s GDP for 2012 at 6.9%, scaling down the forecast by 0.1% points, compared to its projection in January 2012.

It attributed the moderating growth outlook to policy dubiety, supply constrictions, high interest rates and low external demand. Step-up of the euro zone crisis and tensions in West Asia were listed as external risk factors to the growth outlook in the IMF’s World Economic Outlook 2012 report. For 2013, it forecast is that India would grow at 7.3%, thus hinting a recovery. It, nevertheless, cautioned the room for further monetary easing was constrained in India, as underlying inflation pressures persisted, adding there was less fiscal room now, equated to 2007.