IMF praises India for maintaining fiscal discipline in an election year

The International Monetary Fund (IMF) has commended India for upholding fiscal discipline during an election year, affirming its robust economic performance and status as a global economic bright spot. According to the Director of the Asia and Pacific Department at the IMF, Mr. Krishna Srinivasan, India's economy is thriving, with a growth rate of 6.8% and a downward inflation trend reflecting sound macro fundamentals. He emphasized the significance of maintaining fiscal discipline, particularly during election cycles, as it forms the bedrock for sustained growth and prosperity.

India's resilience in navigating various economic shocks in recent years has positioned it as one of the world's fastest-growing major economies. Projections for the fiscal year 2024-25 anticipate a growth rate of 6.8%, driven by robust private consumption and public investment. Despite being an election year, the government's adherence to fiscal discipline has bolstered macroeconomic stability, which is evident in strong forex reserves and overall solid macro fundamentals. The Reserve Bank of India reported a surge in forex reserves to a record high of US$ 648.562 billion, underlining the country's financial resilience and positive economic outlook.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.