For the next year, IMF also estimates a 2.5% growth, from 2.2% before.
India's economic growth for 2017 and 2018 will be slower than earlier projected, the International Monetary Fund (IMF) said in its latest World Economic Outlook released on Tuesday.
While alluding to the nation's exit from recession, the WEO report stated: "Growth in 2017 is projected at 0.8 percent, owing to recovering oil production and ongoing strength in the agricultural sector".
The report was issued on the sidelines of the annual meetings of the International Monetary Fund and the World Bank, which started today and continues until October 15, and in which Egypt participates with a high-level delegation including Sahar Nasr, Minister of Investment, Amr al-Garhy, Minister of Finance and Tariq Amer, the CBE Governor.
"About a third of banks by assets may struggle to achieve sustainable profitability, underscoring ongoing challenges and medium-term vulnerabilities", the IMF said in the report.
"Many tax reforms since the 1990s have involved an increase in the exemption threshold together with a lower top personal income tax rate, causing a shift in the tax burden from very low and very high incomes toward the middle", the report adds. But the impact has declined over the period examined.
The question now is when the Indian economy will accelerate to its previous pace of growth.
"In addition, tax systems are less progressive than indicated by the statutory rates, because wealthy individuals have more access to tax relief", Gaspar said in the blog co-written with Mercedes Garcia-Escribano.
It's a "synchronized Goldilocks upswing" that's likely to fuel more growth and better stock market performance around the world, said research firm Oxford Economics.
The lender revised down its forecast for U.S. economic growth from 2.3 percent to 2.1 percent from July and called on countries with significant debt to raise taxes to protect their financial stability.
In an analysis certain to be seized on by Labour as backing for its tax strategy, the IMF used its influential half-yearly fiscal monitor to attack the rationale for the reductions in tax for the highest earners in recent decades.
It also says that income from capital needs to be taxed adequately.
Mr. Jaitley said the GST Council meets every month and reviews the situation to make amends to the programme.
But India, along with China, will remain the growth drivers for emerging and developing economies.
"The slowdown is driven by softer growth in private consumption as the pound's depreciation weighed on household real income", it said.