India’s Recent Macroeconomic Performance: An Assessment and Way Forward

April 29, 2014

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Muneesh Kapur, and Rakesh Mohan. India’s Recent Macroeconomic Performance: An Assessment and Way Forward, (USA: International Monetary Fund, 2014) accessed December 26, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

The macroeconomic policy response in India after the North Atlantic financial crisis (NAFC) was rapid. The overshooting of the stimulus and its gradual withdrawal sowed seeds for inflationary and BoP pressures and growth slowdown, then exacerbated by domestic policy bottlenecks and volatility in international financial markets during mid-2013. Appropriate domestic oil prices and fiscal consolidation will contribute to the recovery of private sector investment. Fiscal consolidation would also facilitate a reduction in inflation, which would moderate gold imports and favorably impact real exchange rate and current account deficit.

Subject: Deposit rates, Exports, Financial services, Government debt management, Imports, Inflation, International trade, Prices, Public financial management (PFM)

Keywords: Balance of payments, Capital Flows, Central bank, Consumer inflation, Current account, Deposit rates, Exchange rate, Exports, Fiscal Policy, Global, Gold, Government debt management, Growth, Headline WPI inflation, Imports, India, Inflation, Inflation expectation, Monetary Policy, Oil Demand, Private sector investment, Savings, Short-term debt, Wholesale price index, WP, WPI inflation

Publication Details

Pages:

66
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2014/068
Stock No:

WPIEA2014068
ISBN:

9781484360675
ISSN:

1018-5941

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