India's economy gradually recovering, but beware of inflation: IMF

Says gradual cut in monetary support will foster orderly market transition

The International Monetary Fund (IMF) said India’s economy is gradually recovering after it was hit by two Covid waves, but it cautioned the authorities against inflationary pressures. The agency recommended slow reduction in monetary policy support as recovery gains ground.
 
The IMF said while the impact of Covid-19 on investment and human capital could prolong the recovery and affect medium-term growth, the recovery could also be faster than expected because of the pace of vaccination and economic reforms.
 
In its annual report on India under Article IV, the IMF’s executive board said the economic outlook remains clouded because