India: 2007 Article IV Consultation: Staff Report; Staff Statement; Public Information Notice on the Executive Board Discussion; and Statement by the Executive Director for India
IMF Staff Country Reports, February 4, 2008
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- India: 2007 Article IV Consultation: Staff Report; Staff Statement; Public Information Notice on the Executive Board Discussion; and Statement by the Executive Director for India
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Bibliographic details
- Published: February 4, 2008
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781451947465.002
Overview
- India’s strong growth and macroeconomic stability is owed to its sound macroeconomic policies and past structural reforms.
- Swelling capital inflows have highlighted the key policy challenges: managing financial globalization and tackling the supply constraints to growth.
- Monetary operations and communications are adapting to financial globalization.
- The Reserve Bank of India maintains a strong focus on preserving financial stability.
- Further fiscal consolidation is essential to sustain inclusive growth and the financial globalization.
- Structural reforms to make the economy more flexible are key to competitiveness and inclusive growth.
Major findings
- Strong growth and macroeconomic stability are attributed to sound macroeconomic policies and past structural reforms.
- Swelling capital inflows are a central challenge for policy, emphasizing the need to manage financial globalization.
- Supply constraints to growth are identified as a key obstacle to sustaining high growth.
- Monetary policy operations and communications are evolving in response to increased financial globalization.
- The Reserve Bank of India is focused on preserving financial stability amid these changes.
Policy recommendations and priorities
- Manage financial globalization through adapted monetary operations and communications.
- Preserve financial stability as a core central bank priority.
- Continue fiscal consolidation to sustain inclusive growth and accommodate financial globalization.
- Implement structural reforms to increase economic flexibility, competitiveness, and inclusiveness.
Subjects and keywords (as listed)
- Subjects: Balance of payments, Capital inflows, Commercial banks, External debt, Financial institutions, Public debt, Revenue administration
- Keywords: Asia and Pacific, Capital inflows, Commercial banks, CR, deficit, Eastern Europe, exchange listing, Global, headline inflation, ISCR, market, revenue deficit target, staff appraisal, state, WPI inflation
India: 2007 Article IV Consultation: Staff Report; Staff Statement; Public Information Notice on the Executive Board Discussion; and Statement by the Executive Director for India, February 4, 2008. DOI: https://doi.org/10.5089/9781451947465.002
Content in this bundle
- _cr0851 — Executive Summary and Selected Findings