The International Monetary Fund has lowered India's economic growth rate forecast to 7% for the year 2012, which is 0.5 percentage point lower than its projection made last September for the same period.

For 2013, the IMF has revised the growth forecast to 7.3% which is again 0.8 percentage point lower than its earlier forecast.

The IMF, in its revised estimates, has also brought down the economic growth forecast for most of the major economies, including China.

The latest World Economic Outlook report released by the IMF said that "The global recovery is threatened by intensifying strains in the euro area and fragilities elsewhere. Financial conditions have deteriorated, growth prospects have dimmed, and downside risks have escalated.”

Global output is projected to expand by 3.25% in 2012 a downward revision of about 0.75 percentage point relative to the September 2011 World Economic Outlook.

(Sourced from FE)