India: 2019 Article IV Consultation-Press Release; Staff Report; Staff Statement and Statement by the Executive Director for India

IMF Staff Country Reports, December 23, 2019

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India has been among the world’s fastest-growing economies in recent years, lifting millions out of poverty.
Growth slowed to a six-year low in the first half of 2019.
Both consumption and investment decelerated owing to:
- weak, especially rural, income growth,
- stresses in the nonbank financial sector,
- corporate and environmental regulatory uncertainty.

Following a rise in vulnerabilities in 2018, stability has returned.
Stability is anchored by high foreign reserve buffers and a modest current account deficit.

With its strong mandate, the new government has an opportunity to reinvigorate the reform agenda aimed at boosting inclusive and sustainable growth.
Near-term policy guidance:
- Monetary policy should maintain an easing bias at least until the projected recovery takes hold.
- Fiscal stimulus should be avoided given fiscal space at risk.
- Revenue losses from the recent corporate income tax rate cut should be offset.

Subject: External debt, Fiscal consolidation, Fiscal policy, Government debt management, Public debt, Public financial management (PFM), Revenue administration
Keywords: CPI series, CR, Eastern Europe, Fiscal consolidation, Global, Government debt management, Indian rupee, ISCR, staff report projection, U.S. dollar, U.S. dollar exchange rate, U.S. dollar value, U.S. dollar-value, value
Publication date: December 23, 2019
Pages: 104
Volume: 2019
Issue: 385
Series: Country Report No. 2019/385
DOI: https://doi.org/10.5089/9781513524108.002
Stock No: 1INDEA2019001
ISBN: 9781513524108
ISSN: 1934-7685

India: 2019 Article IV Consultation-Press Release; Staff Report; Staff Statement and Statement by the Executive Director for India