In its latest update to the World Economic Outlook, the International Monetary Fund (IMF) cut its projection for India’s growth. The organization estimated Indian economy to contract by 4.5 per cent this fiscal following a longer period of lockdown and slower recovery than anticipated in April, but will smartly bounce back during the next fiscal.
The outlook projected that India will grow by 1.9 per cent during the current fiscal. It also projected a growth of 6 per cent during the next fiscal. However, it is 1.4 percentage points lower than the April outlook. Taking note of liquidity support under the Atmanirbhar Bharat package, it feels that various sectors will gain from that.