IMF Staff Country Reports

The 2024 Article IV Consultation discusses that prudent macroeconomic policies have supported India’s economic resilience, with growth expected to recover from a recent softening and inflation expected to converge to target. Risks to the outlook include deepening geoeconomic fragmentation and a slower pace of domestic demand recovery. Policy priorities include continued rebuilding of fiscal buffers, gradual and data-dependent easing of monetary policy, further strengthening of financial resilience, and advancing comprehensive structural policies to invigorate investment, boost the quantity and quality of employment, and raise potential growth. Monetary policy has been broadly appropriate. Systemic financial risks are broadly contained but further reform and vigilant supervision are needed to address remaining pockets of vulnerability. Broad structural reforms are needed to support private investment, job creation, and medium-term growth. Near-term priorities include labor market reform, further reductions in trade restrictions, continuing the public investment push, and providing strong policy frameworks for a stable economic environment.