The IMF predicts India's economy will grow by 6.3% this fiscal year and next. However, this estimate is lower than the 7% forecast by RBI.
2
Comprehensivereforms needed
"India has potential for even higher growth, with greater contributions from labor and human capital, if comprehensive reforms are implemented," said IMF.
3
Inflation decline,volatility
As per IMF, the headline inflation is expected to gradually decline, although it remains volatile due to food price shocks.
4
Ambitious fiscal consolidation
To reduce public debt, the IMF suggests that India needs "ambitious" fiscal consolidation over the medium term. This includes increasing revenue collection and spending efficiently on infrastructure.
5
Neutral monetary policy
The IMF considers the central bank's current neutral monetary policy stance "appropriate" for bringing inflation back to the 4% target.