Indian economy likely to grow at 6.1% in 2019 as IMF lowers its projection

New Delhi, Oct 15: Indian economy is likely to grow at 6.1 percent in 2019 and 7.0 per cent in 2020, according to the International Monetary Fund (IMF)'s latest projection.

The latest 6.1 percent prediction is 1.2 percent down from IMF's April projections.

On Sunday, the World Bank in its latest edition of the South Asia Economic Focus said India's growth rate is projected to fall to 6 per cent in 2019 from 6.9 per cent of 2018.

India's GDP growth rate slipped to 5 per cent in the first quarter of 2019-20, the lowest in over six years. The International Monetary Fund (IMF) in July projected a slower growth rate for India in 2019 and 2020, a downward revision of 0.3 per cent for both the years, saying its gross domestic product (GDP) will now grow respectively at the rate of 7 per cent and 7.2 per cent, reflecting a weaker-than-expected outlook for domestic demand.

However, India will still be the fastest-growing major economy of the world and much ahead of China, the Washington-based global financial institution had said.

Sharp deceleration in manufacturing output and subdued farm sector activity pulled down India's GDP growth to over six-year low of 5 per cent in the April-June quarter of 2019-20, according to official data released last month.