IMF revises India's growth projection to 9.5 pc for FY22

The International Monetary Fund (IMF) on Tuesday has scaled down India's growth to 9.5 per cent for the current financial year from 12.5 per cent estimated earlier in April.

As per the World Economic Outlook (WEO) report released by IMF, India's Gross Domestic Product (GDP) growth projection is at 9.5 per cent for 2021-22.

It has also revised the GDP growth for FY 2022-23 to 8.5 per cent.

The IMF has projected the global economy to grow at 6 per cent in 2021 and 4.9 per cent in 2022.

"The IMF projects the global economy to grow at 6 per cent in 2021 and 4.9 per cent in 2022. The recovery remains uneven across regions, depending on access to vaccines. More in the updated World Economic Outlook," IMF said in a tweet.

The IMF projected China to grow at 8.1 and 5.7 in 2021-22 and 2022-23 respectively.

India witnessed a strong second wave of COVID-19 earlier this year.

The report said that vaccine access has emerged as the principal fault line along which the global recovery has splits into two blocs: those that can look forward to further normalization of activity later this year (almost all advanced economies) and those that will still face resurgent infections and rising COVID death tolls.

"Elevated inflation is also expected in some emerging market and developing economies, related in part to high food prices. Central banks should generally look through transitory inflation pressures and avoid tightening until there is more clarity on underlying price dynamics," the report said.

( With inputs from ANI )