The team will examine the performance of the Indian economy as per the statutory rights conferred on it under Article IV of the IMF's constitution. The team normally visits India in March, after the presentation of the Union budget. But this time the trip was delayed because of the late presentation of the budget.

The IMF delegation will hold meetings with the secretaries of finance, revenue and expenditure and the discussions will continue right through the day. The discussions will be centered on the balance of payments situation, the fiscal situation, including the extent of deficit, contingent liabilities of the government, disinvestment plans, taxation measures and growth projects. The IMF will come out with a country report in the last week ofJuly or early August. The focus of the IMF report is always on the management of foreign exchange reserves of a country. Finance ministry sources said that the team is expected to ask pointed questions on the reasons for foreign exchange outflows in recent weeks and the expected behaviour of the rupee with respect to the dollar in the short and medium term.