IMF cuts India's growth forecast, still fastest growing economy

New Delhi : Despite a cut of straight 1 per cent, India remains the world’s fastest growing economy with a projected growth of 6.1 percent for the current fiscal year.

"In India, growth softened in 2019 as corporate and environmental regulatory uncertainty, together with concerns about the health of the nonbank financial sector, weighed on-demand," said the IMF in its latest report.

The body suggested India to have some clinical reforms to address weakness and strengths in order to regain the lost percentage.

In comparison, China, whose economy grew at 6.6 per cent in the year 2018, is expected to grow at 6.1 per cent rate in 2019 and 5.8 per cent in 2020.

IMF also decreased forecast for the next fiscal year by 0.2 percent to 7.0%.

The IMF's outlook comes days after a World Bank report pegged India's growth rate in FY 2019-20 at 6 per cent, and the Reserve Bank of India's latest downward revision to 6.1 per cent.