IMF pegs India's FY12 growth at 7.5-7.75%

Washington International Monetary Fund (IMF) expects India's economic growth rate to moderate to 7.5-7.75% this fiscal, from 8.5% in 2010-11, on account slowing investments and sluggish global recovery.

Investment, according to IMF, "is expected to remain sluggish, reflecting, in part, recent corporate sector governance issues and a drag from the renewed global uncertainty and less favourable external financing environment".

IMF said that controlling inflation continues to remain a major challenge for India and added that despite a series of rate hikes by the central bank ( RBI), credit growth still remains strong.