Timely policy response

Indian policy establishment needs to build capacity

The International Monetary Fund (IMF) on Tuesday reduced India’s growth forecast for the current financial year by 90 basis points (bps) to 6.1 per cent. While the downgrade is substantial, it is not surprising for analysts. The World Bank recently reduced its growth forecast for the Indian economy to 6 per cent. Besides such multilateral institutions, the Reserve Bank of India (RBI) also has cut its growth forecast for the current financial year from 6.9 per cent to 6.1 per cent. The outlook for the Indian economy changed significantly after the official data showed that growth slipped to a six-year