What is the India’s GDP forecast for FY18 by IMF in its latest World Economic Outlook (WEO) report?
The International Monetary Fund (IMF) has recently released its October 2017 World Economic Outlook. In it, IMF slashed India’s growth forecast by 0.5% points to 6.7% in FY 18 due to the lingering effects of disruption caused by demonetisation and transition costs of GST. Earlier, in April, the IMF had pegged India’s GDP growth at 7.2% for FY18. It has also lowered the growth projection for FY 19 ( 2018-19) to 7.4% from its earlier estimate in April and June of 7.7%. Though, the IMF was more optimistic about medium-term growth prospects for India through gains from the new indirect tax levy. Apart from IMF, the Reserve Bank of India (RBI) has also lowered its growth projection to 6.7% for the current financial year from its earlier estimate of 7.3% due to adverse impact on economic growth by the implementation of Goods and Services Tax (GST).