India Economic Update, June 2010

India's economic performance in FY2009/10 shows that the recovery from the slowdown during the global financial crisis is well underway. India's Gross domestic Product (GDP) growth in FY2009/10 has beaten expectations by reaching 7.4 percent compared with 6.7 percent in the previous year. In particular, agricultural sector growth was better than feared with a slightly positive growth rate despite the worst monsoon shortfall in three decades. Strong growth in the fourth quarter pushed annual GDP growth to 7.4 percent in 2009-10. Fourth quarter growth reached 8.6 percent (y-o-y), the highest quarterly growth rate since the end of FY2007/08. The industrial sector's robust recovery beat expectations. Growth in the last quarter of fiscal year FY2009/10 was an unexpectedly high 13.3 percent resulting in over 12 percent growth in the second half of year, nearly double the 6 percent growth witnessed in the first half. Higher inflation mars the bright picture, but there are clear indications of moderation. Inflation as measured by the wholesale price index (WPI) averaged 10 percent during February-May 2010. India's recovery after the slowdown seems well underway. Growth is projected to climb to 8-9 percent in the next two years. These growth rates are achievable without a renewed build-up of inflationary pressure as long as agricultural growth returns to trend, infrastructure constraints are alleviated, and international prices remain stable. Over the next year, sources of growth will shift from fiscal stimulus to manufacturing and, possibly a recovering agriculture.

Bibliographic Details

Main Author:	World Bank
Format:	Report biblioteca
Language:	English en_US
Published:	Washington, DC 2010-06
Subjects:	ACCOUNTING, ADVERSE CONSEQUENCES, AGGREGATE DEMAND, AGRICULTURAL OUTPUT, AGRICULTURE, ARREARS, AUCTIONS, BANK BRANCH, BANK CREDIT, BANK INTEREST RATES, BANKING SYSTEM, BASIS POINTS, BONDS, BRANCH NETWORK, BUDGET DEFICIT, BUYBACKS, CAPACITY CONSTRAINTS, CAPITAL ACCOUNT, CAPITAL ACCOUNT LIBERALIZATION, CAPITAL FLOWS, CAPITAL FORMATION, CAPITAL GROWTH, CAPITAL INFLOWS, CAPITAL MARKET, CAPITAL MARKET LIBERALIZATION, CAPITAL OUTFLOWS, CASH RESERVE, CASH RESERVE RATIO, CASH TRANSFER, CENTRAL BANKS, COMMODITY PRICE, COMMODITY PRICES, COMPENSATION FUND, COMPETITIVENESS, CONFIDENCE INDEX, CONFIDENCE INDICES, CONSUMER DURABLES, CONSUMER GOODS, CONSUMER PRICE INDEX, CONSUMERS, CONSUMPTION SMOOTHING, CONVERTIBLE BONDS, CREDIBILITY, CREDIT GROWTH, CURRENCY, CURRENT ACCOUNT DEFICIT, DEBT CRISES, DEBT CRISIS, DEBT INSTRUMENTS, DEBT RATIOS, DEBT RELIEF, DEFICITS, DEPOSIT, DEPOSIT ACCOUNT, DEPOSITORS, DEPOSITS, DEVELOPING COUNTRIES, DEVELOPING COUNTRY, DEVELOPMENT BANK, DEVELOPMENT FINANCE, DIRECT INVESTMENT, DOMESTIC CREDIT, DOMESTIC MARKET, ECONOMIC INTEGRATION, ECONOMIC PERFORMANCE, ECONOMIC POLICIES, ECONOMIC SURVEYS, ECONOMIES OF SCALE, ELASTICITY, EMERGING ECONOMIES, EMERGING MARKET, EMERGING MARKET COUNTRIES, EMERGING MARKET ECONOMIES, EMERGING MARKETS, END USE, EQUITY MARKET, EXCESS DEMAND, EXCESS LIQUIDITY, EXCHANGE RATE, EXCISE TAXES, EXPENDITURE, EXPENDITURES, EXPORT GROWTH, EXPORTS, EXTERNAL BORROWING, EXTERNAL COMMERCIAL BORROWING, EXTERNAL DEBT, FINANCIAL ASSETS, FINANCIAL CRISES, FINANCIAL CRISIS, FINANCIAL INSTITUTIONS, FINANCIAL MANAGEMENT, FINANCIAL STABILITY, FINANCIAL SYSTEM, FISCAL DEFICIT, FISCAL DISCIPLINE, FISCAL POLICIES, FISCAL POLICY, FIXED CAPITAL, FIXED INCOME, FIXED INCOME SECURITIES, FOREIGN CURRENCY, FOREIGN EXCHANGE, FOREIGN EXCHANGE MARKET, FOREIGN EXCHANGE RESERVES, FOREIGN INVESTMENT, FOREIGN INVESTMENTS, FOREIGN INVESTORS, FULL EMPLOYMENT, GDP, GLOBAL ECONOMY, GLOBAL TRADE, GOVERNMENT ACCOUNTING SYSTEM, GOVERNMENT BANK, GOVERNMENT BONDS, GOVERNMENT BUDGET, GOVERNMENT DEBT, GOVERNMENT DEFICIT, GOVERNMENT EXPENDITURE, GOVERNMENT FINANCES, GOVERNMENT REVENUES, GOVERNMENT SPENDING, GROWTH RATE, HOLDINGS, HOME MARKET, HOUSEHOLD SAVINGS, HUMAN CAPITAL, IMPLICIT SUBSIDIES, INCOME TAX, INDUSTRIALIZATION, INFLATION, INFLATION RATE, INFLATION RATES, INFLATIONARY EXPECTATIONS, INFLATIONARY PRESSURE, INFLATIONARY PRESSURES, INFRASTRUCTURE INVESTMENT, INTEREST PAYMENTS, INTEREST RATES, INTERNATIONAL CAPITAL, INTERNATIONAL FINANCE, INTERNATIONAL FINANCIAL CRISES, INTERNATIONAL MARKETS, INTERNATIONAL SETTLEMENTS, INVENTORIES, INVESTING, INVESTMENT FLOWS, INVESTMENT PORTFOLIO, INVESTMENTS IN EQUITIES, LEVEL OF DEBT, LIQUIDITY, LOW INTEREST RATES, M3, MACROECONOMIC MANAGEMENT, MACROECONOMIC POLICIES, MARKET PRICE, MARKET PRICES, MARKET SIZE, MATURITY, MATURITY STRUCTURE, MICROFINANCE, MICROFINANCE INSTITUTIONS, MONETARY POLICY, MONEY SUPPLY, NATIONAL BANK, NATIONAL SAVINGS, NATURAL RESOURCES, OIL PRICE, OIL PRICES, OPEN MARKET, PENSIONS, PER CAPITA INCOME, PER CAPITA INCOMES, PORTFOLIO, PORTFOLIO DIVERSIFICATION, PORTFOLIO FLOWS, PORTFOLIO INVESTMENT, PORTFOLIO INVESTMENTS, PREPAYMENT, PRICE INCREASES, PRICE STABILITY, PRIVATE INVESTMENT, PRODUCTION COSTS, PRODUCTIVITY GROWTH, PROFIT MARGIN, PROVISION OF CREDIT, PUBLIC DEBT, PUBLIC FINANCES, PUBLIC SECTOR BANKS, REAL EXCHANGE RATE, REAL GDP, REAL INTEREST, REAL INTEREST RATE, REAL INTEREST RATES, REPO, REPO RATE, REPO RATES, RESERVE, RESERVE BANK, RESERVES, RETURN, RETURNS, RISK AVERSION, RURAL BANKS, RURAL COOPERATIVE BANKS, SHORT-TERM CAPITAL, STATISTICAL ANALYSIS, STOCK MARKET, STOCKS, TAX, TAX COLLECTION, TOTAL DEBT, TRADE CREDITS, TRADING, TRANSACTION, TRANSPARENCY, UNEMPLOYMENT, VALUATION, VALUATION CHANGES, WAGES, WHOLESALE PRICE INDEX, WHOLESALE PRICES,
Online Access:	http://documents.worldbank.org/curated/en/196021468267366378/India-economic-update https://hdl.handle.net/10986/27774
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