Positive outlook

High public debt remains a risk

The latest Article IV Consultation Report of the International Monetary Fund (IMF) on India, underpinned by macroeconomic and financial stability, gives a largely positive outlook. Despite facing global headwinds, including a global growth slowdown and increased geopolitical fragmentation, India has displayed robust growth over the past year. The IMF has praised India’s near-term fiscal outlook and the Reserve Bank of India’s (RBI’s) commitment to price stability and its handling of monetary policy. Besides, resilience in India’s financial sector, as reflected in low levels of non-performing assets in the banking system, a surge in domestic credit, and adequate capital and liquidity