IMF cuts India’s GDP growth forecast to 9.5% for FY22.

The international Monetary Fund (IMF) on Tuesday cut its economic growth forecast for India to 9.5% for the fiscal year to March 31 , 2022 as the onset of a severe second COVID-19 wave cut into recovery momentum. 

This forecast for 2021-22 is lower than the 12.5% growth in GDP that IMF had projected in April before the second wave took a grip . 

“Growth prospects in India have been downgraded following the severe second COVID wave during March-May and expected slow recovery in confidence from the set back,” IMF said in its latest World Economic Outlook (WEO). 

India’s economy is gradually recovering from a deep contraction in the fiscal year ended March 31, 2021 (7.3%) and a subsequent severe second wave of COVID-19.