IMF gives Modi government one more reason to worry

Washington: International Monetary Fund( IMF) on Thursday said that India’s economic growing is “much weaker” than expected due to corporate and ecological regulatory uncertainty and “lingering weakness” in some non-Bank financial corporations. “Again, we will have a fresh decide of numbers come through here but the recent economic growth in India is much weaker than expected, due primarily to corporate and ecological regulatory skepticism and lingering weakness in some non-Bank financial companies and perils to the outlook are tilted to the downside, as we like to say, ” IMF spokesman Gerry Rice told reporters at a news conference. The economic rise slowed to a seven-year low-pitched to 5 per cent in April to June quarter from eight per cent a year ago, as per both governments data. The International Monetary Fund( IMF) has cut its projection for India’s economic rise by 0.3 percentage points to 7 per cent for the fiscal year 2019 -2 0 owing to the “weaker-than-expected outlook” for the domestic demand. The rise is expected to rise to 7.2 per cent points in FY21, down by the projected growth rate of 7.5 in the earlier report. The slowdown was largely due to a sharp plunge in the manufacturing sector and agriculture output, said the department of Statistics and Programme Implementation in a statement. The previous low was recorded at 4.9 per cent in April to June 2012 -1 3. Consumer demand and private investment have weakened amid global busines resistances and lessening business sentiment.

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