India: 2018 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for India

IMF Staff Country Reports, August 6, 2018

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Stability-oriented macroeconomic policies and progress on structural reforms "continue to bear fruit in India."
Growth slowed to 6.7 percent in FY2017/18, following disruptions related to:
- the November 2016 currency exchange initiative, and
- the July 2017 goods and services tax rollout.
A recovery is under way led by an investment pickup.
Growth is forecast to rise to 7.3 percent in FY2018/19 and 7.5 percent in FY2019/20, on strengthening investment and robust private consumption.

Headline inflation averaged 3.6 percent in FY2017/18, a 17-year low.
Low headline inflation reflected:
- low food prices on a return to normal monsoon rainfall,
- agriculture sector reforms,
- subdued domestic demand, and
- currency appreciation.

Subject coverage includes: Balance of payments; Banking; Foreign direct investment; Inflation; Labor; Prices; Public debt; Revenue administration; Taxes; Value-added tax.
Keywords highlighted: CR, debt, Eastern Europe, Foreign direct investment, Global, government, government approval, gross investment, headline inflation, household inflation expectation, IMF's transparency policy, India, Inflation, ISCR, medium-term headline inflation, U.S. dollar, upside inflation risk, Value-added tax.