“Notable downgrades to the 2022 forecast include Japan (0.9 percentage point) and India (0.8 percentage point), reflecting in part weaker domestic demand – as higher oil prices are expect to weigh on private consumption and investment – and a drag from lower net exports,” the IMF said in its April 19 World Economic Report.
Despite the fact that the IMF’s growth forecast for India has drastically reduced for the current fiscal year. It remains much higher than local projections. The Reserve Bank of India (RBI), for example, has forecasted 7.2 percent GDP growth for FY22-23.
According to the second advance estimate from the statistics ministry, India’s GDP would expand by 8.9% in FY22-23.
Even for FY24, the discrepancy in GDP growth predictions between the IMF and the RBI is significant. The Indian economy is expect to increase 6.9% next year. According to the multinational body, but just 6.3 percent according to the RBI.