India’s economic growth is “much weaker” than expected, according to the IMF, which attributed it to the corporate and environmental regulatory uncertainty and lingering weaknesses in some non-bank financial companies.
“We will have a fresh set of numbers coming up but the recent economic growth in India is much weaker than expected, mainly due to corporate and environmental regulatory uncertainty and lingering weakness in some non-bank financial companies,” IMF spokesman Gerry Rice told reporters at a news conference here. The risks to the outlook are tilted to the downside, he said.
Responding to a question on the recent GDP figures of India, Rice said the IMF will monitor the economic situation in the country. Sharp deceleration in manufacturing output and subdued farm sector activity pulled down India’s GDP growth to over six-year low of 5 per cent in the April-June quarter of 2019-20, according to official data released last month. The previous low in GDP growth was recorded at 4.3 per cent in January-March quarter of 2012-13. India’s economic growth stood at 8 per cent in the same quarter of 2018-19.
“The GDP at Constant (2011-12) Prices in Q1 of 2019-20 is estimated at Rs 35.85 lakh crore, as against Rs 34.14 lakh crore in Q1 of 2018-19, showing a growth rate of 5 per cent,” the National Statistical Office (NSO) said in a statement.
Exports dip 6 pc to $26.13 bn; trade deficit narrows