IMF slashes India's FY23 GDP growth forecast by 80 bps to 7.4%

IMF cites less favourable external conditions and rapid policy tightening by RBI as reasons for lowering India's growth outlook

The International Monetary Fund (IMF) on Tuesday slashed India’s growth forecast for 2022-23 (FY23) by 80 basis points to 7.4 per cent, citing less favourable external conditions and rapid policy tightening by the central bank.

In its update to the April World Economic Outlook, the IMF said that though a global recession in 2022 was ruled out with a growth estimate of 3.2 per cent, the balance of risks was squarely to the downside, driven by a wide range of factors that could adversely affect the global economic performance.  

“The risk of recession is particularly prominent in 2023, when in