India: 2021 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for India

IMF Staff Country Reports, October 15, 2021

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Canonical URL: India: 2021 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for India

The ongoing COVID-19 pandemic has created a prolonged health crisis.
Economic activity was slowing prior to the pandemic.
Two COVID-19 waves have resulted in a deep and broad-based economic downturn with the potential for a longer lasting impact.
The authorities have responded with fiscal policy, including scaled-up support to vulnerable groups, monetary policy easing and liquidity provision, and accommodative financial sector and regulatory policies.
Despite the pandemic, the authorities have continued to implement structural reforms.

Deep and broad-based economic downturn driven by two COVID-19 waves.
Pre-pandemic slowdown in economic activity magnified the pandemic’s impact.
Risk of longer lasting economic consequences due to the severity and breadth of the downturn.

Fiscal policy:
- Scaled-up support to vulnerable groups.
Monetary policy:
- Monetary policy easing.
- Liquidity provision.
Financial sector and regulatory policies:
- Accommodative measures to support financial stability and credit provision.
Structural reforms:
- Continued implementation of structural reforms despite pandemic pressures.

Subject: COVID-19, Expenditure, Government debt management, Health, International organization, Monetary policy, Public debt, Public financial management (PFM), Revenue administration
Keywords: COVID-19, Eastern Europe, Global, Government debt management, headline consumer price inflation, labour market functioning, monetary policy easing, potential GDP, privatization of government enterprise, The Authorities