India: Staff Report for The 2015 Article IV Consultation

IMF Staff Country Reports, March 11, 2015

Source details

Near-term growth outlook has improved and the balance of risks is now more favorable, helped by increased political certainty, several positive policy actions, improved business confidence, and reduced external vulnerabilities.
Growth is projected at 5.6 percent for FY 2014/15.
Growth is projected at 6.3 percent for FY 2015/16, reflecting a revival in industrial and investment activity.
Weaknesses in India’s corporate and bank balance sheets will weigh on credit growth.
Fiscal restraint and a tight monetary stance will act as headwinds in the near term, offsetting the positive growth impact of the improved commodity terms of trade.

Corporate and bank balance sheet weaknesses identified as constraints on credit growth.
State-owned banks and public sector financial institutions are included among subject areas assessed.

Positive policy actions and increased political certainty contributed to improved growth prospects and a more favorable risk balance.
Reduced external vulnerabilities noted as a supportive factor for the outlook.
Monetary policy described as tight; fiscal policy described as restrained—both expected to act as near-term headwinds.

Publication date: March 11, 2015
Pages: 92
Volume: 2015
Issue: 061
Series: Country Report No. 2015/061
DOI: https://doi.org/10.5089/9781498341783.002
ISBN: 9781498341783
ISSN: 1934-7685
Subject keywords: Banking, Commercial banks, Economic sectors, External debt, Financial institutions, Inflation, Prices, Public sector, State-owned banks
Additional keywords: Africa, Asia and Pacific, Commercial banks, CR, Eastern Europe, Global, Inflation, inflation expectation, ISCR, net portfolio investment inflow, policy repo rate, Public sector, South Asia, State-owned banks, statutory liquidity ratio, U.S. dollar

International Monetary Fund. India: Staff Report for The 2015 Article IV Consultation, March 11, 2015.