The International Monetary Fund on Thursday declared that India’s economic growth may be much slower than expected as many factors are attributing to it. India's slow down may be due to corporate and environmental regulatory uncertainty.
Figures on Gross Domestic Product (GDP) released on August 30 stated that GDP has fell to an all time 6 year low to 5% for April-June quarter. As per reports of the commerce ministry economic slowdown occurred due to drop down in these sectors- coal, crude oil, natural gas, refinery products, fertilizer, steel, cement and electricity.
"The latest GDP figures reflect a slow growth rate for India," IMF spokesperson Gerry Rice said. “Considering the IMF’s assessment? Again, we'll 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 and risks to the outlook are tilted to the downside, as we like to say. "
He also adds that the IMF will be closely monitoring the numbers in the coming quarters and will update the assessment in the upcoming World Economic Outlook.
In July, the International Monetary Fund had revised India’s growth forecast for 2019-20 downward to 7%, from the 7.3% as it had predicted in April. "India's economy is set to grow at 7% in 2019, picking up to 7.2% in 2020," the IMF had said in its July update to the World Economic Outlook.