The International Monetary Fund (IMF) lowered India’s economic growth forecast to 6.9 percent for 2012. Eventually a 7 percent growth projection had been announced in January, 2012. So as compared to that India’s growth is in trouble. The Washington-based multilateral agency has lowered its growth outlook on India mainly due to lack of economic reforms and structural factors which has resulted in slowdown in investment. It will also boost up the risk of the investors.
However, the IMF
kept its forecast for 2013 unchanged at 7.3 percent. As per the latest data of
IMF, Indian economy grew by 7.1 percent in 2011.
Concerns about
governance and slow project approvals by the government have weakened business
sentiment, which in turn has adversely affected investment, along with cyclical
factors such as global uncertainty and policy tightening, according to the IMF.
It is indeed a very difficult time for India, but our Finance Ministry assured
us that there will be good time again.
In its
Asia-Pacific Economic Outlook report, the IMF said Asia and Pacific region
economy is expected to grow by 6 percent in 2012- the same growth as registered
in 2011. The report based on online surveys said economic growth in Asia and
Pacific region would accelerate to 6.5 percent in 2013, led by India and China.