Sound fiscal consolidation can boost India's rating outlook: Gita Gopinath

In a Q&A, the chief economist at IMF says that high frequency indicators for the third quarter of Calendar 2021 indicate momentum in India's economic recovery

International Monetary Fund (IMF) Chief Economist Gita Gopinath tells Indivjal Dhasmana high-frequency indicators for the third quarter of 2021 indicate momentum in economic recovery in India. Edited excerpts:

The IMF has stuck to its July forecast of economic growth for India but the lead indicators which came after its July report, such as the index of industrial production, core industries’ output, tax collection, and the purchasing managers’ index for manufacturing and services, do suggest economic recovery is on the upswing. Your take?

In July, we revised growth down from 12.5 per cent to 9.5 per cent in FY22 because downside risks were