India: Selected Issues

Publication Date:

February 21, 2006

Electronic Access:

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Summary:

This Selected Issues paper for India reports that rapid growth is presenting new challenges to macroeconomic policy, although ensuring the sustainability of this growth requires broad-based fiscal and structural reforms. Higher world oil prices present risks in both the near and medium term. In the short-term, higher oil prices combined with robust domestic demand threaten to push inflation higher. Over the longer-term, permanently higher oil prices can depress growth and widen fiscal imbalances, in particular if the economy is not allowed to adjust to new price levels.

Series:

Country Report No. 2006/056

Subject:

English

Publication Date:

February 21, 2006

ISBN/ISSN:

9781451818635/1934-7685

Stock No:

1INDEA2006002

Pages:

74

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