India to grow at 1.9% in FY21, recover to 7.4% path in 2021-22: IMF

The country will still be the fastest growing large economy this financial year, but it will lose that tag next year to China, says the agency.

The International Monetary Fund (IMF) has cut its projection of India’s economic growth to 1.9 per cent for the current financial year, the lowest since the 1991 balance of payments (BoP) crisis. It had earlier forecast a growth rate of 5.8 per cent.
 

This revision was done in light of the impact of the coronavirus disease (Covid-19), and the subsequent nationwide lockdown imposed by the central government to check the spread of the virus.
 

However, the projection is not low comparatively, given the fact that the global economy is projected to contract 3 per cent against a growth of 3.3