India Economic Update, December 2010
The Indian economy recovered from the slowdown at the time of the global financial crisis with strong Gross Domestic Product (GDP) growth, in particular over the first half of FY2010-11. The agricultural sector bounced back strongly after the 2010...
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| Format: | Report |
| Language: | English en_US |
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Washington, DC
2017
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| Online Access: | http://documents.worldbank.org/curated/en/728061468267578327/India-economic-update http://hdl.handle.net/10986/27706 |
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okr-10986-27706 |
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oai_dc |
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Digital Repository |
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Foreign Institution |
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Digital Repositories |
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World Bank Open Knowledge Repository |
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World Bank |
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English en_US |
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ACCOUNTING AGGREGATE DEMAND AGRICULTURE AUCTIONS BALANCE OF PAYMENTS BALANCE OF PAYMENTS CRISIS BANK CREDIT BANK LOANS BANKING SECTORS BASE YEAR BASIS POINTS BENCHMARK BIDS BOND ISSUANCE BORROWING COSTS BROAD MONEY CAPITAL ACCOUNT CAPITAL ACCOUNT RESTRICTIONS CAPITAL ACCOUNT TRANSACTIONS CAPITAL FLOWS CAPITAL GAINS CAPITAL INFLOW CAPITAL INFLOWS CAPITAL SHARE CDS CENTRAL BANK CENTRAL BANK BILLS COMMERCIAL BANK COMMERCIAL BANKS COMMODITY PRICE COMMODITY PRICES COMPETITIVENESS COMPLIANCE GAPS CONSUMER DURABLES CONSUMER GOODS CONSUMER PRICE INDEX CORPORATE SAVINGS CREDIT DEFAULT CREDIT DEFAULT SWAPS CREDIT GROWTH CREDIT RATINGS CURRENT ACCOUNT DEFICIT DEBT DEBT ISSUES DEFICITS DEVALUATION DEVELOPING COUNTRIES DIRECT INVESTMENT DISBURSEMENT DISINFLATION DOLLAR PRICES DOMESTIC CREDIT DOMESTIC MARKET ECONOMIC DEVELOPMENT ECONOMIC DEVELOPMENTS ECONOMIC EXPANSION ECONOMIC GROWTH ECONOMIC POLICIES ECONOMIC RESEARCH EMERGING ECONOMIES EMERGING MARKET EMERGING MARKET COUNTRIES EMERGING MARKET ECONOMIES EMERGING MARKETS ENABLING ENVIRONMENT ENFORCEMENT MECHANISM EQUITY FINANCING EQUITY FLOWS EQUITY INVESTMENT EQUITY INVESTMENTS EQUITY MARKETS EXCESS LIQUIDITY EXCHANGE CONTROLS EXCHANGE RATE EXPENDITURE EXPORT GROWTH EXPORTERS EXPORTS EXTERNALITIES FINANCIAL CRISES FINANCIAL CRISIS FINANCIAL SECTOR FINANCIAL SYSTEM FISCAL AUTONOMY FISCAL DEFICIT FISCAL DEFICITS FISCAL POLICIES FIXED INVESTMENT FORECASTS FOREIGN CAPITAL FOREIGN CURRENCY FOREIGN EXCHANGE FOREIGN EXCHANGE MARKET FOREIGN EXCHANGE MARKETS FOREIGN EXCHANGE RESERVES FOREIGN INVESTMENT FOREIGN INVESTORS GDP GDP PER CAPITA GLOBAL TRADE GOVERNMENT ACCOUNTS GOVERNMENT BANK GOVERNMENT BOND GOVERNMENT BOND YIELDS GOVERNMENT BONDS GOVERNMENT DEFICIT GOVERNMENT FINANCES GOVERNMENT INTERVENTION GOVERNMENT REVENUE GROSS MARGIN GROSS NATIONAL SAVINGS GROWTH PROJECTIONS GROWTH RATE HOLDING HOUSEHOLD SAVINGS HUMAN CAPITAL INCOME INCOME GROUPS INCOME LEVEL INCOME TAX INDEX NUMBERS INFLATION INFLATION INDICES INFLATION RATE INFLATION RATES INFLATIONARY EXPECTATIONS INFRASTRUCTURE INVESTMENT INFRASTRUCTURE INVESTMENTS INSURANCE INSURANCE PREMIUM INTEREST RATES INTERNATIONAL CAPITAL INTERNATIONAL MARKET INVENTORIES INVESTMENT PORTFOLIO INVESTMENT RATE INVESTOR CONFIDENCE INVESTOR PERCEPTIONS LEVEL OF INFLATION LEVEL PLAYING FIELD LEVIES LEVY LIQUIDITY LIVING STANDARDS LOAN LOCAL CURRENCY LONG-TERM CAPITAL M1 M3 MARKET FAILURES MARKET INTEREST RATE MARKET PRICES MONETARY POLICY MONEY SUPPLY NATIONAL SAVINGS OIL PRICE OIL PRICES OPEN MARKET OPEN MARKET OPERATIONS OVERHEAD COSTS OVERVALUATION PER CAPITA INCOME PER CAPITA INCOMES POLITICAL ECONOMY POLITICAL ECONOMY OF REFORM PORTFOLIO PORTFOLIO FLOWS PORTFOLIO INVESTMENT PORTFOLIO INVESTMENTS PRIME LENDING RATE PRIVATE CREDITORS PRIVATE INVESTMENT PRODUCTION FUNCTION PRODUCTIVITY PRODUCTIVITY INCREASES PROFIT MARGIN PROFIT MARGINS PUBLIC INVESTMENT PUBLIC INVESTMENTS PUBLIC SAVINGS PUBLIC STOCKS PURCHASING POWER REAL EXCHANGE RATE REAL EXCHANGE RATES REAL GDP REAL INCOME REAL INTEREST REAL INTEREST RATE REAL INTEREST RATES REGULATORY FRAMEWORK REMITTANCES REPO REPO RATE RESERVE RESERVE REQUIREMENTS RESERVES RETURN RETURNS SAVINGS RATE SECONDARY MARKET SECURITIES SETTLEMENT SHORT-TERM CAPITAL SOVEREIGN BOND STATISTICAL ANALYSES STOCKS SURPLUS LABOR SYSTEMS ANALYSIS TAX TAX COLLECTION TAX EXEMPTIONS TAX RATES TAX REVENUES TAX SYSTEM TAXATION TOTAL COSTS TOTAL DEBT TRADE BALANCE TRADE DEFICIT TRADE REGIME TRADING TRANSPARENCY TREASURIES TROUGH TURNOVER UNDERVALUATION UNEMPLOYMENT WAGES WHOLESALE PRICE INDEX WHOLESALE PRICES |
| spellingShingle |
ACCOUNTING AGGREGATE DEMAND AGRICULTURE AUCTIONS BALANCE OF PAYMENTS BALANCE OF PAYMENTS CRISIS BANK CREDIT BANK LOANS BANKING SECTORS BASE YEAR BASIS POINTS BENCHMARK BIDS BOND ISSUANCE BORROWING COSTS BROAD MONEY CAPITAL ACCOUNT CAPITAL ACCOUNT RESTRICTIONS CAPITAL ACCOUNT TRANSACTIONS CAPITAL FLOWS CAPITAL GAINS CAPITAL INFLOW CAPITAL INFLOWS CAPITAL SHARE CDS CENTRAL BANK CENTRAL BANK BILLS COMMERCIAL BANK COMMERCIAL BANKS COMMODITY PRICE COMMODITY PRICES COMPETITIVENESS COMPLIANCE GAPS CONSUMER DURABLES CONSUMER GOODS CONSUMER PRICE INDEX CORPORATE SAVINGS CREDIT DEFAULT CREDIT DEFAULT SWAPS CREDIT GROWTH CREDIT RATINGS CURRENT ACCOUNT DEFICIT DEBT DEBT ISSUES DEFICITS DEVALUATION DEVELOPING COUNTRIES DIRECT INVESTMENT DISBURSEMENT DISINFLATION DOLLAR PRICES DOMESTIC CREDIT DOMESTIC MARKET ECONOMIC DEVELOPMENT ECONOMIC DEVELOPMENTS ECONOMIC EXPANSION ECONOMIC GROWTH ECONOMIC POLICIES ECONOMIC RESEARCH EMERGING ECONOMIES EMERGING MARKET EMERGING MARKET COUNTRIES EMERGING MARKET ECONOMIES EMERGING MARKETS ENABLING ENVIRONMENT ENFORCEMENT MECHANISM EQUITY FINANCING EQUITY FLOWS EQUITY INVESTMENT EQUITY INVESTMENTS EQUITY MARKETS EXCESS LIQUIDITY EXCHANGE CONTROLS EXCHANGE RATE EXPENDITURE EXPORT GROWTH EXPORTERS EXPORTS EXTERNALITIES FINANCIAL CRISES FINANCIAL CRISIS FINANCIAL SECTOR FINANCIAL SYSTEM FISCAL AUTONOMY FISCAL DEFICIT FISCAL DEFICITS FISCAL POLICIES FIXED INVESTMENT FORECASTS FOREIGN CAPITAL FOREIGN CURRENCY FOREIGN EXCHANGE FOREIGN EXCHANGE MARKET FOREIGN EXCHANGE MARKETS FOREIGN EXCHANGE RESERVES FOREIGN INVESTMENT FOREIGN INVESTORS GDP GDP PER CAPITA GLOBAL TRADE GOVERNMENT ACCOUNTS GOVERNMENT BANK GOVERNMENT BOND GOVERNMENT BOND YIELDS GOVERNMENT BONDS GOVERNMENT DEFICIT GOVERNMENT FINANCES GOVERNMENT INTERVENTION GOVERNMENT REVENUE GROSS MARGIN GROSS NATIONAL SAVINGS GROWTH PROJECTIONS GROWTH RATE HOLDING HOUSEHOLD SAVINGS HUMAN CAPITAL INCOME INCOME GROUPS INCOME LEVEL INCOME TAX INDEX NUMBERS INFLATION INFLATION INDICES INFLATION RATE INFLATION RATES INFLATIONARY EXPECTATIONS INFRASTRUCTURE INVESTMENT INFRASTRUCTURE INVESTMENTS INSURANCE INSURANCE PREMIUM INTEREST RATES INTERNATIONAL CAPITAL INTERNATIONAL MARKET INVENTORIES INVESTMENT PORTFOLIO INVESTMENT RATE INVESTOR CONFIDENCE INVESTOR PERCEPTIONS LEVEL OF INFLATION LEVEL PLAYING FIELD LEVIES LEVY LIQUIDITY LIVING STANDARDS LOAN LOCAL CURRENCY LONG-TERM CAPITAL M1 M3 MARKET FAILURES MARKET INTEREST RATE MARKET PRICES MONETARY POLICY MONEY SUPPLY NATIONAL SAVINGS OIL PRICE OIL PRICES OPEN MARKET OPEN MARKET OPERATIONS OVERHEAD COSTS OVERVALUATION PER CAPITA INCOME PER CAPITA INCOMES POLITICAL ECONOMY POLITICAL ECONOMY OF REFORM PORTFOLIO PORTFOLIO FLOWS PORTFOLIO INVESTMENT PORTFOLIO INVESTMENTS PRIME LENDING RATE PRIVATE CREDITORS PRIVATE INVESTMENT PRODUCTION FUNCTION PRODUCTIVITY PRODUCTIVITY INCREASES PROFIT MARGIN PROFIT MARGINS PUBLIC INVESTMENT PUBLIC INVESTMENTS PUBLIC SAVINGS PUBLIC STOCKS PURCHASING POWER REAL EXCHANGE RATE REAL EXCHANGE RATES REAL GDP REAL INCOME REAL INTEREST REAL INTEREST RATE REAL INTEREST RATES REGULATORY FRAMEWORK REMITTANCES REPO REPO RATE RESERVE RESERVE REQUIREMENTS RESERVES RETURN RETURNS SAVINGS RATE SECONDARY MARKET SECURITIES SETTLEMENT SHORT-TERM CAPITAL SOVEREIGN BOND STATISTICAL ANALYSES STOCKS SURPLUS LABOR SYSTEMS ANALYSIS TAX TAX COLLECTION TAX EXEMPTIONS TAX RATES TAX REVENUES TAX SYSTEM TAXATION TOTAL COSTS TOTAL DEBT TRADE BALANCE TRADE DEFICIT TRADE REGIME TRADING TRANSPARENCY TREASURIES TROUGH TURNOVER UNDERVALUATION UNEMPLOYMENT WAGES WHOLESALE PRICE INDEX WHOLESALE PRICES World Bank India Economic Update, December 2010 |
| geographic_facet |
South Asia India |
| description |
The Indian economy recovered from the
slowdown at the time of the global financial crisis with
strong Gross Domestic Product (GDP) growth, in particular
over the first half of FY2010-11. The agricultural sector
bounced back strongly after the 2010 monsoon brought normal
levels of rainfall, and the industrial sector registered
double-digit growth for three consecutive quarters.
Inflation came down to 7.5 percent in November but then
accelerated again to 8.4 percent in December because of a
renewed food supply shock. The current account deficit in
FY2009-10 was the largest ever (in US$ terms) and the
monthly deficit widened further during the first half of
FY2010-11, but the trend then reversed with import growth
slowing and export growth accelerating in September-December
2010. With the significant inflation differential between
India and its trading partners, the rupees real effective
exchange rate (REER) strengthened. On the fiscal side,
massive windfall revenue from wireless spectrum auctions and
buoyant tax revenue are likely to be offset by two
supplementary spending bills. Monetary policy tightening
continued with increases in policy rates. This update also
discusses several medium-term issues: the link between the
real exchange rate and growth, a long-term look at
education, demographics and growth, the challenges facing
the introduction of the Goods and Services Tax (GST), and
the mid-term evaluation of the eleventh development plan. On
the real exchange rate, economists have pointed out that the
most successful emerging market economies have maintained an
undervalued exchange rate to promote exports. In India, the
real exchange rate has been broadly stable since the early
1990s, and the International Monetary Fund (IMF) judges it
fairly valued with respect to different measures of
equilibrium. However, the growing trade deficit and a large
fiscal deficit do not quite fit this picture. Discussing
policies, we argue that it would be best to focus on
policies that increase productivity and competitiveness. |
| format |
Report |
| author |
World Bank |
| author_facet |
World Bank |
| author_sort |
World Bank |
| title |
India Economic Update, December 2010 |
| title_short |
India Economic Update, December 2010 |
| title_full |
India Economic Update, December 2010 |
| title_fullStr |
India Economic Update, December 2010 |
| title_full_unstemmed |
India Economic Update, December 2010 |
| title_sort |
india economic update, december 2010 |
| publisher |
Washington, DC |
| publishDate |
2017 |
| url |
http://documents.worldbank.org/curated/en/728061468267578327/India-economic-update http://hdl.handle.net/10986/27706 |
| _version_ |
1764464458697015296 |
| spelling |
okr-10986-277062021-04-23T14:04:42Z India Economic Update, December 2010 World Bank ACCOUNTING AGGREGATE DEMAND AGRICULTURE AUCTIONS BALANCE OF PAYMENTS BALANCE OF PAYMENTS CRISIS BANK CREDIT BANK LOANS BANKING SECTORS BASE YEAR BASIS POINTS BENCHMARK BIDS BOND ISSUANCE BORROWING COSTS BROAD MONEY CAPITAL ACCOUNT CAPITAL ACCOUNT RESTRICTIONS CAPITAL ACCOUNT TRANSACTIONS CAPITAL FLOWS CAPITAL GAINS CAPITAL INFLOW CAPITAL INFLOWS CAPITAL SHARE CDS CENTRAL BANK CENTRAL BANK BILLS COMMERCIAL BANK COMMERCIAL BANKS COMMODITY PRICE COMMODITY PRICES COMPETITIVENESS COMPLIANCE GAPS CONSUMER DURABLES CONSUMER GOODS CONSUMER PRICE INDEX CORPORATE SAVINGS CREDIT DEFAULT CREDIT DEFAULT SWAPS CREDIT GROWTH CREDIT RATINGS CURRENT ACCOUNT DEFICIT DEBT DEBT ISSUES DEFICITS DEVALUATION DEVELOPING COUNTRIES DIRECT INVESTMENT DISBURSEMENT DISINFLATION DOLLAR PRICES DOMESTIC CREDIT DOMESTIC MARKET ECONOMIC DEVELOPMENT ECONOMIC DEVELOPMENTS ECONOMIC EXPANSION ECONOMIC GROWTH ECONOMIC POLICIES ECONOMIC RESEARCH EMERGING ECONOMIES EMERGING MARKET EMERGING MARKET COUNTRIES EMERGING MARKET ECONOMIES EMERGING MARKETS ENABLING ENVIRONMENT ENFORCEMENT MECHANISM EQUITY FINANCING EQUITY FLOWS EQUITY INVESTMENT EQUITY INVESTMENTS EQUITY MARKETS EXCESS LIQUIDITY EXCHANGE CONTROLS EXCHANGE RATE EXPENDITURE EXPORT GROWTH EXPORTERS EXPORTS EXTERNALITIES FINANCIAL CRISES FINANCIAL CRISIS FINANCIAL SECTOR FINANCIAL SYSTEM FISCAL AUTONOMY FISCAL DEFICIT FISCAL DEFICITS FISCAL POLICIES FIXED INVESTMENT FORECASTS FOREIGN CAPITAL FOREIGN CURRENCY FOREIGN EXCHANGE FOREIGN EXCHANGE MARKET FOREIGN EXCHANGE MARKETS FOREIGN EXCHANGE RESERVES FOREIGN INVESTMENT FOREIGN INVESTORS GDP GDP PER CAPITA GLOBAL TRADE GOVERNMENT ACCOUNTS GOVERNMENT BANK GOVERNMENT BOND GOVERNMENT BOND YIELDS GOVERNMENT BONDS GOVERNMENT DEFICIT GOVERNMENT FINANCES GOVERNMENT INTERVENTION GOVERNMENT REVENUE GROSS MARGIN GROSS NATIONAL SAVINGS GROWTH PROJECTIONS GROWTH RATE HOLDING HOUSEHOLD SAVINGS HUMAN CAPITAL INCOME INCOME GROUPS INCOME LEVEL INCOME TAX INDEX NUMBERS INFLATION INFLATION INDICES INFLATION RATE INFLATION RATES INFLATIONARY EXPECTATIONS INFRASTRUCTURE INVESTMENT INFRASTRUCTURE INVESTMENTS INSURANCE INSURANCE PREMIUM INTEREST RATES INTERNATIONAL CAPITAL INTERNATIONAL MARKET INVENTORIES INVESTMENT PORTFOLIO INVESTMENT RATE INVESTOR CONFIDENCE INVESTOR PERCEPTIONS LEVEL OF INFLATION LEVEL PLAYING FIELD LEVIES LEVY LIQUIDITY LIVING STANDARDS LOAN LOCAL CURRENCY LONG-TERM CAPITAL M1 M3 MARKET FAILURES MARKET INTEREST RATE MARKET PRICES MONETARY POLICY MONEY SUPPLY NATIONAL SAVINGS OIL PRICE OIL PRICES OPEN MARKET OPEN MARKET OPERATIONS OVERHEAD COSTS OVERVALUATION PER CAPITA INCOME PER CAPITA INCOMES POLITICAL ECONOMY POLITICAL ECONOMY OF REFORM PORTFOLIO PORTFOLIO FLOWS PORTFOLIO INVESTMENT PORTFOLIO INVESTMENTS PRIME LENDING RATE PRIVATE CREDITORS PRIVATE INVESTMENT PRODUCTION FUNCTION PRODUCTIVITY PRODUCTIVITY INCREASES PROFIT MARGIN PROFIT MARGINS PUBLIC INVESTMENT PUBLIC INVESTMENTS PUBLIC SAVINGS PUBLIC STOCKS PURCHASING POWER REAL EXCHANGE RATE REAL EXCHANGE RATES REAL GDP REAL INCOME REAL INTEREST REAL INTEREST RATE REAL INTEREST RATES REGULATORY FRAMEWORK REMITTANCES REPO REPO RATE RESERVE RESERVE REQUIREMENTS RESERVES RETURN RETURNS SAVINGS RATE SECONDARY MARKET SECURITIES SETTLEMENT SHORT-TERM CAPITAL SOVEREIGN BOND STATISTICAL ANALYSES STOCKS SURPLUS LABOR SYSTEMS ANALYSIS TAX TAX COLLECTION TAX EXEMPTIONS TAX RATES TAX REVENUES TAX SYSTEM TAXATION TOTAL COSTS TOTAL DEBT TRADE BALANCE TRADE DEFICIT TRADE REGIME TRADING TRANSPARENCY TREASURIES TROUGH TURNOVER UNDERVALUATION UNEMPLOYMENT WAGES WHOLESALE PRICE INDEX WHOLESALE PRICES The Indian economy recovered from the slowdown at the time of the global financial crisis with strong Gross Domestic Product (GDP) growth, in particular over the first half of FY2010-11. The agricultural sector bounced back strongly after the 2010 monsoon brought normal levels of rainfall, and the industrial sector registered double-digit growth for three consecutive quarters. Inflation came down to 7.5 percent in November but then accelerated again to 8.4 percent in December because of a renewed food supply shock. The current account deficit in FY2009-10 was the largest ever (in US$ terms) and the monthly deficit widened further during the first half of FY2010-11, but the trend then reversed with import growth slowing and export growth accelerating in September-December 2010. With the significant inflation differential between India and its trading partners, the rupees real effective exchange rate (REER) strengthened. On the fiscal side, massive windfall revenue from wireless spectrum auctions and buoyant tax revenue are likely to be offset by two supplementary spending bills. Monetary policy tightening continued with increases in policy rates. This update also discusses several medium-term issues: the link between the real exchange rate and growth, a long-term look at education, demographics and growth, the challenges facing the introduction of the Goods and Services Tax (GST), and the mid-term evaluation of the eleventh development plan. On the real exchange rate, economists have pointed out that the most successful emerging market economies have maintained an undervalued exchange rate to promote exports. In India, the real exchange rate has been broadly stable since the early 1990s, and the International Monetary Fund (IMF) judges it fairly valued with respect to different measures of equilibrium. However, the growing trade deficit and a large fiscal deficit do not quite fit this picture. Discussing policies, we argue that it would be best to focus on policies that increase productivity and competitiveness. 2017-08-10T19:51:28Z 2017-08-10T19:51:28Z 2010-12 Report http://documents.worldbank.org/curated/en/728061468267578327/India-economic-update http://hdl.handle.net/10986/27706 English en_US CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank Washington, DC Economic & Sector Work :: Economic Updates and Modeling Economic & Sector Work South Asia India |