"We had a downgrade in one large market India but we believe that's temporary. We expect momentum to improve further going ahead. There are also some bright spots like Indonesia and Vietnam," IMF Chief Kristalina Georgiev said.
While the IMF guards such statements with the condition of availability of fiscal space, there will be some tough decisions that may have to be taken by the government on Feb 1 when the Union budget is presented, as it involves taking a call on the fiscal numbers.
The rankings come at a time when the Reserve Bank of India (RBI), World Bank, International Monetary Fund (IMF) and various rating agencies have slashed the country's growth forecasts amid a slowdown in the global economy.
Demonetisation and the subsequent introduction of Goods and Service Taxes (GST) were aimed at lifting Indian economy. But the government's vision has been counterproductive given the way international bodies are calculating India's economic growth