The International Monetary Fund (IMF) lowered India's growth projection from 12.5% to 9.5% for fiscal 2021-22 - down by three percentage points, following the severe second wave of Covid-19 pandemic in the country.
For the current fiscal year, India witnessed the largest drop in growth projections made by IMF, even as the global economic growth rate remains the same at 6%, reports the NDTV.
IMF expects for fiscal 2022-23, economic growth of 8.5% - higher than 6.9% it had projected in April 2021.
"Growth prospects in India have been downgraded following the severe second Covid wave during March-May and expected slow recovery in confidence from that setback," IMF said in its latest World Economic Outlook (WEO).
In its second bi-monthly monetary policy committee meeting for fiscal 2021-22 held on 4 June, the Reserve Bank of India (RBI) also lowered the country's gross domestic product (GDP) projection to 9.5% , from 10.5%.