New Delhi, May 5 -- India has some policy space to navigate the ongoing global energy shock, supported by stable inflation and calibrated fiscal measures, Krishna Srinivasan, Director, Asia and Pacific Department at the International Monetary Fund, said today.

"They have cut excise taxes on oil. They provide some subsidies, fertilizers. This can continue for some time, not much more in terms of fiscal space. At some point in time, you have to allow price signals to start to flow. And that's something which is true for India," he said during an event held by NCAER.

"In terms of monetary policy, inflation is within the tolerance band. And so you have some time to see through the shock," he added.

"The shock is one where you have prices g...