In its report, the IMF projected India’s economy to grow by 5.8%, which is 1.2% lower than its earlier prediction. The report further predicted the economy to grow by 6.5% in 2021-22, which is again 0.9% lower than the earlier prediction.

IMF also predicted the global economy to go up by 3.3% in the current calendar year, which is 0.1% lower than its previous estimates, and 3.4% in 2022, which is again 0.2% below its earlier estimates.

According to Business Standard, IMF Economist, Gita Gopinath quoted in a blog post that the biggest contributor to the revision of global economic growth was India, where growth slowed sharply due to weak rural income and stress in the non-banking financial sector.

She, however, said that the global growth for 2020 remains highly uncertain as it majorly relies on improved outcomes for stressed economies like Iran, Turkey, Argentina and for under-performing emerging and developing economies such as Brazil, Mexico and India.

On the other hand, the Managing Director of IMF, Kristalina Georgieva, said the reality is that the global growth remains sluggish, even as she mentioned that, by adding roughly 0.5% to the global growth, the monetary easing has played a major role in stabilising the global economy.

She added that a more comprehensive solution would be needed if global growth slows down again in future.