The IMF lowered these estimates citing the weak growth in income in rural India with pressure from non-banking financial companies.
The IMF has informed about the state of the global economy before the World Economic Forum’s annual summit begins in Davos.
The IMF believes that India’s economic growth rate may be 4.8 percent in 2019, 5.8 percent in 2020 and 6.5 percent in 2021.
According to the news agency PTI, IMF chief economist Geeta Gopinath has said that India’s economic growth rate has been undermined largely due to softening in non-banking financial sector and weak growth in income in rural areas.
On the other hand, China’s economic growth rate is expected to increase 0.2 percent to 6 percent in the year 2020.
The IMF said that domestic demand in India has come down sharply against expectations.
IMF Chief Economist Geeta Gopinath also said that the pace of global growth in the year 2020 is still uncertain.
He has given the reason for this that countries like Brazil, India and Mexico are not performing according to capacity.