The International Monetary Fund (IMF) has said that India's Gross Domestic Product (GDP) growth remains quite robust into the future, despite marginally trimming the country’s growth projection for 2018 due to high oil prices and a tight monetary policy regime.
IMF has said that for India, the main factor behind the downgrade is the rise in oil prices, and the country is an oil importer. Apart from this, it said that the general tightening in global financial conditions is also playing a role in affecting India’s growth. It also said ‘It is a bit tighter than under our forecast in April. That adds to oil and tighter global financial conditions in taking a little bit off growth for next year’.
In its latest World Economic Outlook (WEO) update, IMF forecasted a growth rate of 7.3 percent in 2018 and 7.5 percent in 2019 for India, which was down by 0.1 percent and 0.3 percent respectively than its April projections.