The IMF has lowered its growth forecast for the country to 9.5 per cent for this fiscal from its earlier projection of 12.5 per cent in April, which is the same as the RBI forecast of 9.5 per cent but lower than the World Bank projection of 8.5 per cent growth.

“Growth prospects in India have been downgraded following the severe second Covid wave during March-May and expected slow recovery from that setback,” the IMF said in its latest World Economic Outlook (WEO).

The Indian economy had contracted 7.3 per cent in the last fiscal on account of the pandemic.

The IMF joins a host of global and domestic agencies which have cut India’s growth estimates for the current fiscal. Last month, S&P Global Ratings projected a 9.5 per cent GDP growth in the current fiscal and 7.8 per cent in 2022-23. Another US-based rating agency Moody's has projected India clocking 9.3 per cent growth in the current fiscal ending March 2022.