NEW DELHI : Demonetisation and Goods and Services Tax (GST) seem set to hamper India's growth in 2017-18. The International Monetary Fund (IMF) is the latest to trim its 2017-18 economic growth forecast for India.
Even as IMF raised its economic growth projections for most major economies, it did the opposite for India. Also, its projection of 6.7 per cent growth for India is lower the 6.8 per cent for China. That means, IMF sees India losing its tag of the fastest-growing major economy, reports Business Standard.
“The growth projection for 2017-18 has been revised down to 6.7 per cent, reflecting still lingering disruptions associated with the currency exchange initiative introduced in November 2016, as well as transition costs related to the launch of the GST in July 2017,” IMF said in its World Economic Outlook released on the occasion of the Fund-Bank annual meeting in Washington on Tuesday.