The International Monetary Fund (IMF) has reduced India’s growth forecast for FY20 by 90 basis points to 6.1 percent, down from the 7 percent estimate in July. Meanwhile, the growth forecast for FY21, which stood at 7.2 percent in July, was slashed by 20 bps to 7 percent. The downward revision in India’s growth forecast by the IMF reflects a weaker-than-expected outlook for domestic demand. According to the IMF, in order to address the current problem of cyclical weakness in its economy, India must use monetary policy and envisage broad-based structural reforms. A credible fiscal consolidation path is required in order to cut elevated public debt over the medium term. India’s economy, it said, is held back by sector-specific weaknesses- auto, real estate, non-banking finance companies. On global growth, the IMF said that the US-China trade war will dampen global growth, bringing it to its slowest pace since the 2008 global financial crisis.