India’s GDP to slowdown this, next fiscal too: IMF

The International Monetary Fund (IMF) projects India’s economy to slow down to 6.25 per cent GDP growth this fiscal and further to 5.25 per cent in 2009-10, reflecting the ‘deteriorating’ global outlook.

There is impact of the global slowdown in India. The projection of by IMF indicates that the impact of global slowdown would remain in 2009-10 also. The international crude price have been seen at stable in the international market.

The current account deficit is projected at about three per cent of GDP this fiscal, primarily due to a markedly higher oil import bill. For 2009-10 the current account deficit is forecast to narrow to 1.5 per cent of GDP reflecting lower oil prices and weaker domestic demand.