"There is a need for greater multilateral cooperation to resolve trade conflicts, to address climate change and risks from cybersecurity, and to improve the effectiveness of global taxation", said the report.
The global body had projected that the Indian economy will grow 7.5 percent in FY21 against 7.7 percent estimated earlier.
The IMF published the latest edition of its World Economic Outlook on Tuesday. "China trade tensions has improved as the prospect of a trade agreement takes shape", Gopinath said. The fund cut its outlook for United Kingdom growth to 1.2 per cent this year, down 0.3 points from three months ago.
Global growth is forecast to slow to 3.3% in 2019 from 3.6% in 2018 with a the Reserve Bank of India's threshold of 4% in the current fiscal at 3.9% and marginally exceed at 4.2% next year. There was also weakened spending on consumer durables and automobiles, export orders fell as a result of the US-China trade actions, and growth fell to 6.0% in the second half of 2018, from 6.8% in the first half. The IMF conditionality review that takes place while the Spring Meetings are on-going should be used to ensure that IMF programmes respect democracy and human rights.
"This is a delicate moment", IMF Chief Economist Gita Gopinath said at a press briefing in Washington.
It said the projected GDP growth rate of the country would remain 2.9 percent this year, while it would be 2.8 percent the next year, as compared to 5.2 percent in 2018.
The IMF lowered its outlook for the euro bloc to 1.3 per cent this year, down 0.3 points from three months ago. Beijing has rolled out a series of fiscal stimulus measures to counteract the hit from the United States trade war but India's growth was downgraded by two tenths of a point. The Dow Jones Industrial Average index fell 0.7 per cent and the S&P 500 and the Nasdaq Composite both closed about 0.6 per cent lower as the growth forecasts and renewed trade worries sparked by new USA tariff threats on European aircraft and food products weighed on sentiment.
Across all economies, the imperative is to take actions that boost potential output, improve inclusiveness, and strengthen resilience, the top International Monetary Fund economist said.
The IMF now expects 70 percent of the global economy to experience a slowdown in growth in 2019, whereas just two years ago, 75 percent of the global economy experienced synchronized growth acceleration, IMF managing director Christine Lagarde said last week.
The report cautions that downside risks to the outlook continue to dominate: Trade tensions could flare up again, and there is risk of a "no-deal Brexit withdrawal" or persistent slowing of economic activity.
In the April meeting, the central bank's Monetary Policy Committee (MPC) has cut its GDP growth forecast for FY20 to 7.2 percent, due to weakening global economic growth and slower pick-up in the domestic investment activity.
Italy will be the slowest-growing advanced economy in 2019, the International Monetary Fund said, achieving feeble growth of 0.1 per cent.
Canada is barely addressed in the text of the report, although it did note that the country would be one of the biggest beneficiaries if the USA continues to apply tariffs to products from China.
The IMF said that to secure its growth prospects, it is essential that India continues to implement structural and financial sector reforms and makes an effort to reduce public debt through continued fiscal consolidation.