IMF Staff Country Report-IMF Executive Board Concludes 2023 Article IV Consultation with India

December 15, 2023--India's economy showed robust growth over the past year. Headline inflation has, on average, moderated although it remains volatile. Employment has surpassed the pre pandemic level and, while the informal sector continues to dominate, formalization has progressed.
The financial sector has been resilient-strongest in several years-and largely unaffected by global financial stress in early 2023.

The current account deficit in FY2022/23 widened as the post-pandemic recovery of domestic demand and transitory external shocks outweighed the impact of robust services exports and proactive diversification of critical oil imports. While the budget deficit has eased, public debt remains elevated and fiscal buffers need to be rebuilt. Globally, India's 2023 G20 presidency has demonstrated the country's important role in advancing multilateral policy priorities.

Growth is expected to remain strong, supported by macroeconomic and financial stability.