The state of the economy

The IMF has argued for fiscal and monetary prudence. But for accelerating growth India should be prudent about such prudence

The recent (IMF) report on the Indian economy projects a gradual acceleration of growth but also draws attention to several downside risks. The report uses circumspect language about demonetisation and the botched implementation of the goods and services tax (GST) but is quite explicit on the growth impact. In medical language, the Indian economy is recovering from some recent traumas but is still convalescing and runs some risks of relapse.

The GST could have been implemented more intelligently, with the phased introduction of net-based reporting and a simpler tax structure. But the basic gains of a single tax structure in