International Monetary Fund (IMF)on Thursday posit that India’s economic growth is “much weaker” than expected due to corporate and environmental regulatory uncertainty and “lingering weakness” in some non-bank financial companies.

On Thursday IMF spokesman Gerry Rice addressing a news conference said that “Again, we will have a fresh set of numbers coming up, but the recent economic growth in India is much weaker than expected, mainly due to corporate and environmental regulatory uncertainty and lingering weakness in some non-bank financial companies and risks to the outlook are tilted to the downside, as we like to say”.

The International Monetary Fund (IMF) in July projected a slower growth rate for India in 2019 and 2020. As per the government data, the economic growth slowed to a seven-year low to 5 per cent in April to June quarter from 8 per cent a year ago. It is predicted that GDP will now rise at the rate of 7 and 7.2 per respectively. Reflecting a weaker-than-expected outlook for domestic demand. Ministry of Statistics and Programmer Implementation said in a statement that, the slowdown was majorly due to apical drop in the manufacturing sector and agriculture output. The previous recorded was at 4.9 per cent in April to June (2012-13).

The Washington-based global financial institution had said that “India will still be the fastest-growing major economy of the world and much ahead of China”