IMF says Indian economic environment weaker than projected

18 Feb '20

1 min read

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There is an urgent need for more ambitious structural and financial sector reforms and a medium-term fiscal consolidation strategy in India due to rising debt levels, while ensuring a more accommodative fiscal stance in the budget, according to the International Monetary Fund (IMF), which said India’s economic environment is weaker than earlier IMF forecast.

“While the budget touches on ongoing sectoral efforts, there remains an urgent need for more ambitious structural and financial sector reform measures and a medium-term fiscal consolidation strategy, anchored in tangible revenue and expenditure measures, especially given rising debt levels,” IMF spokesperson Gerry Rice told reporters in Washington, DC, recently.

“The environment is weaker than what we had forecast earlier, that a more accommodative fiscal stance, this year, is appropriate, so that more accommodative fiscal stance in the budget, we think, is appropriate,” he was quoted as saying by a news agency.

The IMF in January lowered India’s economic growth estimate for the current fiscal to 4.8 per cent.

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