India: Staff Report for the 2006 Article IV Consultation

IMF Staff Country Reports, February 14, 2007

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India: Staff Report for the 2006 Article IV Consultation

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Bibliographic details

• Published: February 14, 2007
• Series: IMF Staff Country Reports
• DOI: https://doi.org/10.5089/9781451818642.002

Summary

• The 2006 Article IV Consultation finds that India’s economy has continued to grow above trend.
• Average growth of 8 percent in the last three years.
• Growth is broad based: robust consumption, investment, and exports.
• Manufacturing expanding at more than 10 percent y/y; industry has joined services as an engine of growth.
• Net foreign investor inflows rebounded after the May/June 2006 stock market correction; stock prices recovered smartly, reaching new historical highs.
• Real estate prices continue to grow at a rapid clip on the back of a credit boom.

Economic performance and structure

• Aggregate growth:
  • Average growth of 8 percent in the last three years.
• Sectoral dynamics:
  • Manufacturing: expanding at more than 10 percent y/y.
  • Industry and services both acting as engines of growth.
• Demand composition:
  • Robust consumption, investment, and exports driving expansion.

Financial markets and asset prices

• Capital flows and equity markets:
  • Net foreign investor inflows rebounded after the May/June 2006 stock market correction.
  • Stock prices recovered smartly, reaching new historical highs.
• Real estate and credit:
  • Real estate prices continue to grow rapidly, fueled by a credit boom.

Policy-relevant subjects highlighted

• Asset prices
• Banking
• Corporate bonds
• External debt
• Financial institutions
• Prices
• Public debt
• Revenue administration
• Tax incentives

Publication and identification

• Date: February 14, 2007
• Pages: 66
• Volume: 2007
• Issue: 063
• Series: Country Report No. 2007/063
• DOI: https://doi.org/10.5089/9781451818642.002
• Stock No: 1INDEA2007001
• ISBN: 9781451818642
• ISSN: 1934-7685

International Monetary Fund. "India: Staff Report for the 2006 Article IV Consultation", IMF Staff Country Reports 2007, 063 (2007).

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