India''s economy is slowing considerably and uncertainty surrounding the outlook in unusually large, International Monetary Fund (IMF) said on Tuesday.
The IMF predicted the India''s gross domestic product growth may slow to 6.3 per cent in the fiscal year 2008-2009, ending in March, and to 5.3 per cent the following year. That would be lower than the 9 per cent growth rate in the 2007-2008 year.
The IMF cautioned that a big expansion of deficit may raise fears of fiscal sustainability as India''s debt as a percentage of GDP was already elevated.
The fund said, "Policy measures to stimulate the economy and a good harvest should support domestic demand."
"The uncertainty surrounding the forecast is unusually large, with significant downside risks. The main upside risk stems from a larger-than-anticipated impact of the stimulus measures that the authorities have already implemented."
The IMF predicted the India''s gross domestic product growth may slow to 6.3 per cent in the fiscal year 2008-2009, ending in March, and to 5.3 per cent the following year. That would be lower than the 9 per cent growth rate in the 2007-2008 year.
The IMF cautioned that a big expansion of deficit may raise fears of fiscal sustainability as India''s debt as a percentage of GDP was already elevated.
The fund said, "Policy measures to stimulate the economy and a good harvest should support domestic demand."
"The uncertainty surrounding the forecast is unusually large, with significant downside risks. The main upside risk stems from a larger-than-anticipated impact of the stimulus measures that the authorities have already implemented."
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