India growth projection lowers in 2017 and 2018 due to demonetisation and GST:IMF

Today IMF in its latest World Economic Outlook report lowered the growth projection of India for the year 2017 by 0.5 percentage less than its last prediction in April and July. IMF attributed the downfall of growth to demonetisation and GST.

It also lowered the country's growth for 2018 to 7.4 per cent, 0.3 percentage points less than its previous two projections in July and April

"In India, growth momentum slowed, reflecting the lingering impact of the authorities currency exchange initiative as well as uncertainty related to the midyear introduction of the country-wide Goods and Services Tax," the IMF said in its latest World Economic Outlook report.

"Strong government spending and data revisions in India led to an upward revision of 2016 growth to 7.1 per cent (6.8 per cent in April), with upward revisions of about 0.2 percentage point, on average, for 2014 and 2015," it said.