Publication:
India Economic Update, September 2012

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dc.contributor.authorWorld Bank
dc.date.accessioned2017-06-13T15:30:11Z
dc.date.available2017-06-13T15:30:11Z
dc.date.issued2012-09
dc.description.abstractReal gross domestic product (GDP) growth has slowed to a nine year low of 6.5 percent for FY2011-12, from 8.4 percent in the two previous years. The slowdown was most pronounced in the industrial sector, and more specifically in manufacturing and mining. In the quarter ending in June 2012, industrial output growth as measured by the Index of Industrial Production (IIP) has been negative. The contraction was particularly pronounced in the production of capital goods, which is in line with falling investment demand on the expenditure side of the National Accounts. The current account deficit reached a record 4.2 percent of GDP in FY2011-12, because of decelerating export growth and high crude prices. Merchandise exports grew by 41 percent in September 2011, but their growth slowed to 2 percent by August 2012 (measured as 12-months cumulative exports compared with the same 12 months of the previous year). Inflation reached 7.6 percent in August 2012. This represents a marked slowdown since September 2011, but there has been an uptick in food prices in recent months. Also, higher domestic prices for fuel, which are necessary to rein in spending on subsidies, will contribute to inflationary pressure. Inflation is therefore expected to reach 8 percent at end-March 2013. Real GDP growth is forecast to reach around 6.0 percent in FY2012-13, after 5.3 percent growth Q4 of FY2011-12 and 5.5 percent growth in Q1 of FY2012-13. The slowdown is at least partly caused by structural problems. These include power shortages, which are partly caused by the financial difficulties facing the electricity sector as discussed in the special topic section of this update, the corruption scandals that have hit the mining and telecom sectors, investor uncertainty because of pending changes in legislation (mining, taxes, land acquisition), and the tightening constraints of land and infrastructure. Tighter macroeconomic policies, slow growth in the core Organization for Economic Co-operation and Development (OECD) countries, and worries about another global recession also weigh on growth. Important signals to revive domestic growth drivers to lift sentiment more than produce instant efficiency gains could come from reforms recently announced and, more importantly, the reform of direct taxes, the implementation of the long-delayed Goods and Services Tax (GST), and passage of the land acquisition and mining bills. This update also looks closely at two important topics for medium- and long-term growth, namely India's Right to Education (RTE) Act, which aims to shape elementary education, and the financial difficulties in the Indian power sector.en
dc.identifierhttp://documents.worldbank.org/curated/en/194611468049195508/India-economic-update
dc.identifier.doi10.1596/27069
dc.identifier.urihttps://hdl.handle.net/10986/27069
dc.languageEnglish
dc.language.isoen_US
dc.publisherWashington, DC
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo
dc.subjectAGGREGATE DEMAND
dc.subjectAGRICULTURE
dc.subjectARREARS
dc.subjectASSET PRICE
dc.subjectASSET QUALITY
dc.subjectAUCTIONS
dc.subjectAVERAGE COSTS
dc.subjectBALANCE OF PAYMENTS
dc.subjectBALANCE SHEET
dc.subjectBANKING SECTOR
dc.subjectBANKING SYSTEM
dc.subjectBASIS POINTS
dc.subjectBENCHMARKS
dc.subjectBILLS
dc.subjectBOND
dc.subjectBOND YIELDS
dc.subjectBONDS
dc.subjectBUDGET DEFICIT
dc.subjectCAPACITY CONSTRAINTS
dc.subjectCAPITAL ACCOUNT
dc.subjectCAPITAL ADEQUACY
dc.subjectCAPITAL BASE
dc.subjectCAPITAL FLOWS
dc.subjectCAPITAL FORMATION
dc.subjectCAPITAL GAINS
dc.subjectCAPITAL GOODS
dc.subjectCAPITAL INFLOWS
dc.subjectCAPITAL OUTFLOWS
dc.subjectCAPITAL OUTLAYS
dc.subjectCAPITAL STOCK
dc.subjectCAPITAL STOCKS
dc.subjectCASH RESERVE
dc.subjectCASH TRANSFERS
dc.subjectCENTRAL BANK
dc.subjectCENTRAL BANKS
dc.subjectCENTRAL GOVERNMENT DEBT
dc.subjectCOLLATERAL
dc.subjectCOMMERCIAL BANKS
dc.subjectCOMMODITY PRICE
dc.subjectCOMMODITY PRICES
dc.subjectCONSOLIDATION
dc.subjectCONSUMER PRICE INDEX
dc.subjectCONSUMERS
dc.subjectCREDIT AVAILABILITY
dc.subjectCURRENCY ASSETS
dc.subjectCURRENT ACCOUNT
dc.subjectCURRENT ACCOUNT DEFICIT
dc.subjectDEBT ISSUES
dc.subjectDEBT RESTRUCTURING
dc.subjectDECLINE IN INVESTMENT
dc.subjectDEFAULTS
dc.subjectDEFICITS
dc.subjectDEPOSIT
dc.subjectDEPOSITS
dc.subjectDERIVATIVES
dc.subjectDEVALUATION
dc.subjectDEVELOPING COUNTRIES
dc.subjectDEVELOPING COUNTRY
dc.subjectDOMESTIC DEBT
dc.subjectDOMESTIC ECONOMIC ACTIVITY
dc.subjectDOMESTIC PRICES
dc.subjectECONOMIC DEVELOPMENTS
dc.subjectECONOMIC GROWTH
dc.subjectECONOMIC PROGRESS
dc.subjectEMERGING ECONOMIES
dc.subjectEMERGING MARKET
dc.subjectEMERGING MARKET CURRENCIES
dc.subjectEMERGING MARKETS
dc.subjectEQUITY FLOWS
dc.subjectEQUITY INVESTMENT
dc.subjectEXCHANGE RATE
dc.subjectEXPENDITURE
dc.subjectEXPENDITURES
dc.subjectEXPORT COMPETITIVENESS
dc.subjectEXPORT GROWTH
dc.subjectEXPORTERS
dc.subjectEXPORTS
dc.subjectEXTERNAL COMMERCIAL BORROWINGS
dc.subjectEXTERNAL DEBT
dc.subjectEXTERNAL FINANCING
dc.subjectFINANCES
dc.subjectFINANCIAL CRISIS
dc.subjectFINANCIAL SAVINGS
dc.subjectFINANCIAL SECTOR
dc.subjectFINANCIAL SYSTEM
dc.subjectFINANCING OF INVESTMENT
dc.subjectFINANCING REQUIREMENTS
dc.subjectFISCAL BURDEN
dc.subjectFISCAL DEFICIT
dc.subjectFISCAL DEFICITS
dc.subjectFIXED CAPITAL
dc.subjectFOOD PRICES
dc.subjectFORECASTS
dc.subjectFOREIGN CURRENCY
dc.subjectFOREIGN CURRENCY ASSETS
dc.subjectFOREIGN DIRECT INVESTMENT
dc.subjectFOREIGN EXCHANGE
dc.subjectFOREIGN EXCHANGE MARKET
dc.subjectFOREIGN EXCHANGE RESERVES
dc.subjectFOREIGN INVESTMENTS
dc.subjectFOREIGN INVESTORS
dc.subjectFOREIGN RESERVES
dc.subjectGLOBAL ECONOMY
dc.subjectGLOBAL MARKET
dc.subjectGOLD
dc.subjectGOVERNMENT BONDS
dc.subjectGOVERNMENT BORROWING
dc.subjectGOVERNMENT BUDGET
dc.subjectGOVERNMENT EXPENDITURE
dc.subjectGOVERNMENT EXPENDITURES
dc.subjectGOVERNMENT FUNDING
dc.subjectGOVERNMENT OWNERSHIP
dc.subjectGOVERNMENT SAVINGS
dc.subjectGROSS DOMESTIC PRODUCT
dc.subjectGROSS FIXED CAPITAL FORMATION
dc.subjectGROWTH RATE
dc.subjectHIGH INFLATION
dc.subjectHOUSEHOLD SAVINGS
dc.subjectHUMAN RESOURCE
dc.subjectIMPORT
dc.subjectIMPORT GROWTH
dc.subjectIMPORTS
dc.subjectINCOME TAX
dc.subjectINFLATION
dc.subjectINFLATION RATES
dc.subjectINFLATIONARY PRESSURE
dc.subjectINFLATIONARY PRESSURES
dc.subjectINFRASTRUCTURE BONDS
dc.subjectINTEREST PAYMENTS
dc.subjectINTEREST RATE
dc.subjectINTEREST RATES
dc.subjectINTERNATIONAL FINANCIAL CRISIS
dc.subjectINTERNATIONAL FINANCIAL MARKETS
dc.subjectINTERNATIONAL INVESTORS
dc.subjectINTERNATIONAL RESERVES
dc.subjectINVENTORIES
dc.subjectINVENTORY
dc.subjectINVESTING
dc.subjectINVESTMENT CLIMATE
dc.subjectINVESTMENT DEMAND
dc.subjectINVESTMENT PROJECTS
dc.subjectINVESTMENTS IN GOVERNMENT SECURITIES
dc.subjectINVESTOR PERCEPTIONS
dc.subjectINVESTOR UNCERTAINTY
dc.subjectJOINT STOCK COMPANIES
dc.subjectLEGISLATIVE FRAMEWORK
dc.subjectLENDERS
dc.subjectLIQUIDITY
dc.subjectLIQUIDITY CONSTRAINTS
dc.subjectLOAN
dc.subjectLOAN PORTFOLIOS
dc.subjectLOCAL CURRENCY
dc.subjectLOCAL GOVERNMENTS
dc.subjectMACROECONOMIC POLICIES
dc.subjectMACROECONOMIC POLICY
dc.subjectMARKET PRICES
dc.subjectMATURITY
dc.subjectMERGERS
dc.subjectMONETARY POLICY
dc.subjectNATIONAL DEBT
dc.subjectOIL PRICE
dc.subjectOIL PRICES
dc.subjectOPTIMIZATION
dc.subjectPHYSICAL ASSETS
dc.subjectPORTFOLIO
dc.subjectPORTFOLIO CAPITAL
dc.subjectPORTFOLIO FLOWS
dc.subjectPORTFOLIO INVESTMENTS
dc.subjectPOTENTIAL OUTPUT
dc.subjectPRICE CHANGES
dc.subjectPRIME LENDING RATE
dc.subjectPRIVATE CONSUMPTION
dc.subjectPRIVATE INVESTMENT
dc.subjectPRODUCTION FUNCTION
dc.subjectPROFIT MARGINS
dc.subjectPUBLIC INVESTMENT
dc.subjectPUBLIC SECTOR BANKS
dc.subjectPUBLIC SECTOR BORROWING
dc.subjectPUBLIC SPENDING
dc.subjectPURCHASING POWER
dc.subjectRATES OF RETURN
dc.subjectREAL GDP
dc.subjectREAL INTEREST
dc.subjectREAL INTEREST RATE
dc.subjectRECESSION
dc.subjectREMITTANCES
dc.subjectREPO
dc.subjectREPO RATE
dc.subjectRESERVE
dc.subjectRESERVE REQUIREMENT
dc.subjectRESERVE REQUIREMENTS
dc.subjectRESERVES
dc.subjectRISK AVERSION
dc.subjectSAFETY NETS
dc.subjectSAVINGS RATE
dc.subjectSHORT TERM DEBT
dc.subjectSHORT-TERM BORROWING
dc.subjectSHORT-TERM CAPITAL
dc.subjectSHORT-TERM DEBT
dc.subjectSHORT-TERM EXTERNAL DEBT
dc.subjectSIDE EFFECTS
dc.subjectSLOW GROWTH
dc.subjectSLOWDOWN
dc.subjectSOVEREIGN BOND
dc.subjectSOVEREIGN RATING
dc.subjectSTOCK MARKET
dc.subjectSTOCK MARKETS
dc.subjectSTRUCTURAL PROBLEMS
dc.subjectSURPLUS
dc.subjectTAX
dc.subjectTAX BENEFITS
dc.subjectTAX POLICIES
dc.subjectTAX POLICY
dc.subjectTAX RATES
dc.subjectTOTAL COSTS
dc.subjectTOTAL DEBT
dc.subjectTOTAL FACTOR PRODUCTIVITY
dc.subjectTOTAL REVENUE
dc.subjectTRADE DEFICIT
dc.subjectTRADING
dc.subjectUNEMPLOYMENT
dc.subjectUNEMPLOYMENT RATE
dc.subjectWAGES
dc.subjectWITHDRAWAL
dc.subjectWORKING CAPITAL
dc.titleIndia Economic Update, September 2012en
dc.typeReporten
dc.typeRapportfr
dc.typeInformees
dspace.entity.typePublication
okr.crossref.titleIndia Economic Update, September 2012
okr.date.disclosure2012
okr.date.doiregistration2025-05-07T10:59:19.498610Z
okr.doctypeEconomic & Sector Work::Economic Updates and Modeling
okr.doctypeEconomic & Sector Work
okr.docurlhttp://documents.worldbank.org/curated/en/194611468049195508/India-economic-update
okr.guid194611468049195508
okr.identifier.externaldocumentum000356161_20121010010015
okr.identifier.internaldocumentum16814564
okr.identifier.report73093
okr.importedtrue
okr.language.supporteden
okr.pdfurlhttp://documents.worldbank.org/curated/en/194611468049195508/pdf/730930REVISION0pdata0September02012.pdfen
okr.region.administrativeSouth Asia
okr.region.countryIndia
okr.topicFinance and Financial Sector Development::Access to Finance
okr.topicFinance and Financial Sector Development::Currencies and Exchange Rates
okr.topicFinance and Financial Sector Development::Debt Markets
okr.topicMacroeconomics and Economic Growth::Economic Theory & Research
okr.topicPrivate Sector Development::Emerging Markets
okr.unitEconomic Policy and Poverty, SAR
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