IMF cuts global growth forecasts as India falters

The International Monetary Fund (IMF) on Monday lowered growth estimate for India to 4.8 per cent for financial year 2019-20, citing stress in the non-bank financial sector and weak rural income growth as the major factors for the downward revision.

While providing an update on the global economy ahead of the start of the World Economic Forum (WEF) annual summit, the IMF cut its India growth forecast to 4.8 per cent for 2019.

It expects growth to be 5.8 per cent in 2020 and rise to 6.5 per cent in 2021.

India-born IMF Chief Economist Gita Gopinath said growth in India slowed sharply owing to stress in the non-bank financial sector and weak rural income growth.