Indian economy will contract by 4.5 percent, projects IMF

The International Monetary Fund (IMF) has cut its projection for India and projected that the Indian economy will contract this fiscal.

“India’s economy is projected to contract by 4.5 per cent following a longer period of lockdown and slower recovery than anticipated in April,” IMF said in the latest update of ‘World Economic Outlook.’

Interestingly, IMF was among two or three agencies, which had estimated growth in its April outlook. At that time, it was projected that India will grow by 1.9 per cent during current fiscal.

The Indian economy was majorly hit as the country went into a lockdown due to the COVID Pandemic.

India is the fifth-largest economy in the world, with GDP of $2.94 trillion in 2019, according to the IMF’s World Economic Outlook of October 2019.

The Prime Minister of India Narendra Modi in January 2020 called for a focussed effort to make India a USD 5 trillion economy.


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