The view from Washington: IMF is optimistic on India, but has its caveats

While the Fund is critical of the note ban and MSP on farm products, among other things, it is generally bullish about the prospects of 7.75% growth in the medium term, writes T N Ninan

Annual reports on countries, done by the World Bank and International Monetary Fund (IMF), are almost always politely worded and any criticism sugar-coated to the extent possible. Decoding the message that is masked by the politeness needs work. But even by the diplomatic standards of the Washington twins, the Fund’s latest annual report on India is notable for being suffused with optimism, with broad-based approval of the government’s macro-economic management and reform measures.

Economic growth is expected to continue its recovery into next year, settling eventually at a medium-term rate of 7.75 per cent (though with some downside risks), and thereby