International Monetary Fund (IMF) on Tuesday cut India’s GDP forecast by 3 percentage points to 9.5% for this fiscal year.
In April, it had projected GDP growth of 12.5%.
“Growth prospects in India have been downgraded following the severe second COVID wave during March–May and expected slow recovery in confidence from that setback,” the fund said in a statement .
However, despite the sharp cut in growth projection, it will still be higher than most other major economies.
China is expected to grow at 8.1%, while the US will likely to see 7% GDP growth during 2021.
The immediate priority is to deploy vaccines equitably worldwide, IMF said.