The International Monetary Fund (IMF) has trimmed its economic growth forecast for India to 7.8 per cent in 2011. That is down from its June forecast of 8.2 per cent.
The economic growth forecast for 2012 has also been scaled down to 7.5 per cent from an earlier level of 7.8 per cent.
"Investment (in India) is expected to remain sluggish, reflecting, in part, recent corporate sector governance issues and a drag from renewed global uncertainty and less favourable external financing environment," the IMF said in its latest World Economic Outlook report.
The report has highlighted that a key challenge for policymakers in India is to bring down inflation, which was running close to double digits and had become more generalised. The IMF has also noted that despite policy tightening the real interest rates are much lower than pre-crisis averages.
The Prime Minister’s Economic Advisory Council (PMEAC) expects the country’s GDP to grow close to 8 per cent this fiscal, despite the uncertainties in the global economy.