India’s growth is slowing at a more rapid rate than in the past decade, according to a report released on Tuesday by the International Monetary Fund.
The IMF, which is a member of the World Bank, said it found that India’s economic growth slowed in the first quarter of this year compared with the same period last year.
India’s annual growth rate was 1.9 percent in the year to March, the IMF said.
India is still on track to surpass China as the world’s fastest-growing economy this year, and has become a popular destination for investors and tourists.
The IMF said India’s real gross domestic product (GDP) grew by 0.4 percent in April-June, which was the slowest pace since the previous year.
Growth is expected to slow in the second quarter and then accelerate in the third quarter, when India’s GDP is forecast to grow at 3.7 percent.
India is a major market for global companies, which account for nearly a quarter of global exports.
The country also exports $1.5 trillion worth of goods annually.
The latest figures also showed that India is on track for the fastest pace of expansion since 2009.
In April, the global economy expanded by 2.3 percent, according the IMF.
India was a leading contributor to the global recovery after it suffered the worst economic shock in decades during the global financial crisis in 2008.
The global economy grew by 1.4 percentage points in April, which came despite a record number of new jobless claims.
“We continue to see continued rapid growth in India’s gross domestic products (Gdp), which continues to drive growth and employment,” the IMF report said.
“However, as we have reported previously, India’s pace of economic growth has slowed in recent quarters as the global recession has continued to deepen.
India has experienced a sustained slowdown in its growth over the past year and a half.”
India’s economy grew at a rate of 1.1 percent in January-March, its slowest rate since the third-quarter of 2009, according a report by the IMF released on Wednesday.
That was the sixth straight quarter of contraction.
It is also the slowEST economic growth rate since April of 2008.
On Monday, the World Trade Organization (WTO) said India had made significant progress in reducing tariffs on goods from the United States and Canada, but that it could not yet move forward on a global trade pact.
China has said it will impose tariffs of 5 percent on Indian exports to other countries in order to counter unfair trading practices.
India and China are also engaged in a trade war.
Despite the slowdown in the economy, the Indian government has set a target of doubling the number of jobs created by 2020, an IMF report showed.
Earlier this year the IMF warned that India needs to slash its deficit to close the gap between its revenue and expenditure, and improve its economic competitiveness.