IMF praises India’s economy for being an elephant starting to run
New Delhi — India is on track to hold its position as one of the world’s fastest-growing economies as reforms start to pay off, according to the International Monetary Fund (IMF). The $2.6-trillion economy was described by Ranil Salgado, the IMF’s mission chief for India, as an elephant starting to run, with growth forecast at 7.3% in the fiscal year to end-March 2019 and 7.5% in the year after that. The nation accounts for about 15% of global growth, according to the Washington-based fund. Key risks flagged by the IMF in its annual Article IV assessment of the economy include higher oil prices, tightening global financial conditions and tax revenue shortfalls. Authorities should take advantage of stronger growth to bring down debt levels, simplify the consumption tax system and continue to gradually tighten monetary policy, it said. After a shock cash ban in late 2016 and a disruptive nationwide sales tax last year, India’s economy is once again gaining momentum. Growth reached the...
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