India’s economic growth is ‘much weaker’ than expected, according to the International Monetary Fund (IMF), which attributed that to corporate and environmental regulatory uncertainty and weaknesses in some non-banking financial companies. Spokesman Gerry Rice said IMF will monitor India’s situation and present an update in its World Economic Outlook. The risks to the outlook are tilted to the downside, he said.

In July, IMF had projected a slower growth rate for India in 2019 and 2020, a downward revision of 0.3 per cent for both the years, saying its gross domestic product (GDP) will now grow respectively at the rate of 7 and 7.2 per cent reflecting a weaker-than-expected outlook for domestic demand. However, India will still be the fastest-growing major economy of the world and much ahead of China, it had said.