IMF cuts India's FY24 growth rate to 5.9 pc

This forecast aligns with what private-sector economists anticipate and is significantly lower than the Reserve Bank of India's (RBI) projection of 6.5 percent.

During its first monetary policy review of the current fiscal year on April 6, the RBI raised its growth forecast by 10 basis points.

One basis point is one-hundredth of a percentage point.

According to the statistics ministry, the Indian economy is expected to have expanded by 7 percent in 2022-23. However, the IMF's projection for the same period is slightly lower, at 6.8 percent.

The IMF has revised down India's growth forecast for the next year by 50 basis points to 6.3 percent in its World Economic Outlook report released on April 11.

This is part of a series of revisions made by the IMF, which has also lowered its global growth forecasts for 2023 and 2024 by 10 basis points each, to 2.8 percent and 3 percent respectively, from its January forecasts.

"Tentative signs in early 2023 that the world economy could achieve a soft landing – with inflation coming down and growth steady – have receded amid stubbornly high inflation and recent financial sector turmoil," the IMF said in its report, referring to the collapse of regional banks in the US and the takeover of Credit Suisse by UBS in Switzerland.