India Economic Update - September 2011

  

After a return to trend growth in fiscal year 2010-11, India’s economic growth is likely to slow to 7-8 percent in the next two years. The slowdown is a result of uncertainties weighing down investment, tighter macroeconomic policies intended to fight still-high inflation, and the base effect of the strong agricultural rebound in FY2010-11. Slow growth in core OECD countries means domestic drivers for growth will have to be strengthened. This would include progress on important structural reforms, and further measures to achieve fiscal consolidation and reorient government spending toward investment and growth. Even then, risks from the uncertain international environment are high. Policymakers would do well in reviewing crisis preparedness at this time.

India Economic Update - A return to Trend Growth, but a weakening outlook - Sept. 2011 (1.26 mb)

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