New Delhi, July 28 -- The COVID-19 second wave has shaved off 3 per cent from the International Monetary Fund's (IMF) previous projection for India's economic growth for this fiscal year, pegging it now at 9.5 per cent, but the country still remains the world's fastest-growing large economy.

The IMF's World Economic Outlook Update (WEOU) on Tuesday made the cuts to the projection of 12.5 per cent made in April, and the January projection of 11 per cent.

"Growth prospects in India have been downgraded following the severe second COVID wave during March-May and expected slow recovery in confidence from that setback," said the update released in Washington.

The IMF stressed the importance of vaccinations in the economic recovery from the ...