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

Author/Editor:

Muneesh Kapur ; Rakesh Mohan

Publication Date:

April 29, 2014

Electronic Access:

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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.

Series:

Working Paper No. 14/68

Subject:

English

Publication Date:

April 29, 2014

ISBN/ISSN:

9781484360675/1018-5941

Stock No:

WPIEA2014068

Price:

$18.00 (Academic Rate:$18.00)

Format:

Paper

Pages:

66

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