IMF lowers India growth forecast

The International Monetary Fund (IMF) on Tuesday marginally pared India's growth estimate, saying it expects it to grow 7.4% in the current financial year (2016-17) as it also trimmed global growth projections due to Brexit.
IMF , in its latest update to the World Economic outlook, said the Indian economy will grow by 7.4% in 2017-18 as well. The IMF had earlier estimated India's economic growth at 7.5%. The Indian economy , Asia's third largest, grew 7.6% in 2015-16. Source: IMF India still remains the fastest growing major economy in the world as China's growth is expected to moderate. China's growth forecast for 2016 is up 0.1 percentage point, to 6.6%, and is unchanged for 2017 at 6.2%.
“In India, economic activity remains buoyant, but the growth forecast for 2016-17 was trimmed slightly , reflecting a more sluggish investment recovery ,“ the IMF said.
Taking into account the better-than-expected economic activity so far in 2016 and the likely impact of Brexit, global growth forecasts for 2016 and 2017 were lowered by 0.1 percentage point relative to the April 2016 outlook to 3.1% and 3.4% respectively .

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