New Delhi, Oct 28 (KNN) The economy of India is expected to expand at 6.8 per cent in the current financial year, said the International Monetary Fund (IMF) on Thursday.

It is a revision down by 1.4 percentage points since the April 2022 World Economic Outlook. 

The reason is a weaker-than-expected recovery in the second quarter and subdued external demand.

In the next financial year it is expected that India will see a slowdown to 6.1 per cent due to external demand and a tightening in monetary and financial conditions weigh on growth.

This was said by IMF in its Regional Economic Outlook.

As per the report, several Asian emerging market and developing economies have seen a decumulation of their international reserves-between 3-10 per cent of their holdings in the first half of 2022.

This has been noted in India, Indonesia, the Philippines and Thailand-especially during periods of intense external financial shocks.  (KNN Bureau)