India is classified to have "medium level" vulnerability from further external shocks like a drop in international trade and fall in remittances because of current global financial crisis, says a report released by the International Monetary Fund (IMF).
The report titled ‘The implications of the global financial crisis for low-income countries’ correlates between the downward revision in growth estimate and change in foreign exchange reserves in the last six months.
Growth projection for India’s Gross Domestic Product (GDP), the sum of goods and services produced in a country, has been revised downwards by 2.8 percentage points to 5.1 per cent in 2009. Also in the last six months, reserves expressed in terms of months of imports have dropped to 8.8 per cent against earlier estimate of 9.7 per cent.
