New Delhi: International Monetary Fund, IMF has commended India’s economic resilience and growth amid global challenges. The Fund in its annual Article IV consultation report has said that India has emerged as a star performer and is projected to contribute more than 16 percent of the global growth. It said, aided by prudent macroeconomic policies, India is on track to be one of the fastest-growing major economies in the world this year.
The report observed that there is a very strong push by the government to invest in infrastructure and develop the logistics that are needed for a solid basis for growth. “The government has done several structural reforms, the flagship one being digitalization, which has been building up over many years and has put India on a strong platform for increased productivity and growth in the future” it added. It projected the Indian economy to grow at 6.3% during the current fiscal.
“India has potential for even higher growth, with greater contributions from labor and human capital, if comprehensive reforms are implemented,” the IMF said. It recommended that policy priorities should focus on replenishing fiscal buffers, securing price stability, maintaining financial stability, and accelerating inclusive growth through comprehensive structural reforms.
IMF also praised RBI’s proactive monetary policy actions and a strong commitment to price stability. It agreed that the current neutral monetary policy stance, anchored on a data-dependent approach, is appropriate and should gradually bring inflation back to target. RBI’s Monetary Policy Committee has raised the policy repo rate by 250 basis points in 2022-23 to 6.5 percent to bring down high inflation following a surge in global commodity prices.
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