Policy framework: Sustained improvement will boost economic confidence

In the context of fiscal management, the IMF noted that with a revision in the gross domestic product base in 2026, India should revisit debt targets to make them more ambitious

The broad assessment in the International Monetary Fund’s (IMF’s) country report, released on Wednesday, reflects India’s macroeconomic stability and provides some useful pointers for policy discussion. The IMF expects the Indian economy to grow 6.6 per cent in the current year. Growth is expected to moderate to 6.2 per cent in 2026-27. The IMF’s baseline assumption reckons on a prolonged 50 per cent American tariff, which the government has rightly objected to. India is negotiating with the United States (US) with the objective of arriving at a deal soon. The IMF further notes that the corporate and financial