The International Monetary Fund (IMF) on Tuesday lowered India's growth forecast for 2012 to 6.9%, from 7% earlier, citing policy inertia and slower growth in the rest of the world. "In some economies, such as India, domestic factors also contributed to the slowdown, as a deterioration in business sentiment weakened investment and policy tightening raised borrowing costs," the IMF said in its latest World Economic Outlook.