The 2023 Article IV Consultation highlights that India is on track to be one of the fastest growing major economies in the world this year, underpinned by prudent macroeconomic policies. Nonetheless, the economy is facing global headwinds, including a global growth slowdown in an increasingly...

India’s economy has slowed substantially before and after the global financial crisis. The economy is in a weaker position than before the crisis. With investment particularly hard-hit, potential GDP is likely to be lower than estimated. Inflation is constraining the room for monetary policy...

KEY ISSUES Context: The tightening of global liquidity has increased external pressures and heightened the focus on India’s macroeconomic imbalances (high inflation, large current account and fiscal deficits) and structural weaknesses (particularly supply bottlenecks in infrastructure, power...

The economy has rebounded from the pandemic-related downturn but is facing new headwinds. The authorities have responded with fiscal policy measures to support vulnerable groups and to mitigate the economic impact of commodity price increases, as well as with front-loaded monetary policy...