International Monetary Fund lowered India’s Growth Projection for 2012 to 6.9 Per Cent

The International Monetary Fund (IMF) on 27 April 2012 lowered India’s growth projection to 6.9 per cent for 2012. The multilateral agency in January projected Indian economy to grow to by 7 per cent for 2012. The slashed growth projection is broadly attributed to the country’s poor performance on the front of economic reforms and slowing investment.

The IMF, however, maintained India’s growth estimate for 2013 at 7.3 per cent. As per the IMF, the national economy grew by 7.1 per cent last year.

The IMF’s growth projection is an indication for the government to expedite the process of economic reforms which has long been victim of the country’s internal political clutter. Many of the important reforms are still in the pipeline which needed to be approved as soon as possible. Government should make sure that it is taking adequate majors to boost up the sentiment of investors, who are increasingly getting disenchanted of the future prospects of Indian Economy.

Standard and Poor’s on 25 April 2012 slashed the credit rating outlook for India from stable to negative.