India’s relationship with the International Monetary Fund has always been uneasy ~ marked by politeness in public, but suspicion and wariness in private. As the IMF’s latest assessments of India tread the familiar path of praise laced with pointed prescriptions, it is time to reflect on why this discomfort persists, and whether the multilateral institution truly understands the India it so often critiques.

On paper, the IMF’s recent projections are flattering: India remains the fastest-growing major economy in the world, with expectations of strong medium-term growth. But read a little further, and the tone shifts. The Fund expresses concern over India’s fiscal deficit, its debt levels, and its “slow pace” of fiscal consolidation. It cautions against expanding social spending and subsidies, and urges tighter monetary policy.

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These are not surprising observations ~ but they are also not context-sensitive. India’s........

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