The International Monetary Fund expects the global economy to expand at a lower rate in 2015 than its original forecast in April. What is more interesting is the analysis presented by chief economist Olivier Blanchard.

Blanchard said global growth could continue to disappoint in the coming years because of three
factors: the debt overhang lingers on nearly seven years after the financial crisis; ageing populations in several important economies could pull down potential growth; and the end of the commodity price boom will hurt growth in exporting countries.

Now take a look at India against this backdrop: its combined debt in the public and private sectors is not too high; it will continue to have a young population for several decades; and it benefits from lower commodity prices. In other words, India seems to be in a good place, as long as policy reforms support an economy bolstered by important structural factors.

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