World Bank2014-01-092014-01-092013-04https://hdl.handle.net/10986/16542The economy is likely to expand by 5.0 percent in FY2013. Although the slowing momentum of economic growth may have bottomed out in the third quarter of FY2013, even a substantial pickup in the last quarter of the fiscal year is unlikely to lift the growth rate of real Gross Domestic Product (GDP) at factor cost much beyond 5.0 percent given the weakness observed over the previous three quarters. Inflation and fiscal deficit have declined, but the current account deficit has widened. The Reserve Bank of India (RBI) has had to strike a tough balance between providing some monetary stimulus and restraining further price growth. As inflation, measured by the wholesale price index, has begun to decelerate in recent months, the authorities may gain additional policy room. Continued progress on the reform agenda is key to mitigating downside risks. The authorities' ability to respond to negative external shocks is more limited today than during the 2008-09 global crisis. Additional efforts may be needed to create the fiscal space for India's progress towards universal health coverage. The depreciation of the rupee appears to have lost steam, and the currency strengthened in the second half of the year. With a weaker Balance of Payment (BoP) position, the rupee continued to lose value during FY2013 and hit an all-time low in June, remaining around that level until August. Food inflation remained high while fuel inflation accelerated after deregulation of diesel prices. Expenditure compression in the social sectors and reduction in capital spending allowed for reaching the fiscal targets.en-USCC BY 3.0 IGOACCOUNTINGADJUSTMENT PATHADVERSE EFFECTSAGRICULTUREASSET QUALITYAUCTIONSBALANCE OF PAYMENTSBANK CREDITBANKING SECTORBENCHMARKBENEFICIARIESBENEFICIARYCAPITAL ACCUMULATIONCAPITAL FLOWSCAPITAL FORMATIONCAPITAL GOODSCAPITAL INFLOWSCASH RESERVECASH RESERVE RATIOCASH TRANSFERCENTRAL BANKCENTRAL BANKSCENTRAL GOVERNMENT DEBTCOMMERCIAL BANKSCOMMODITY PRICECOMMODITY PRICESCOMMUNITY HEALTHCONSOLIDATIONCONSUMER CONFIDENCECONSUMER DURABLESCONSUMER PRICE INDEXCONSUMPTION EXPENDITURECORPORATE BONDCORPORATE BOND MARKETSCREDIT EXPANSIONCREDIT GROWTHCREDIT RATINGCURRENCYCURRENT ACCOUNTCURRENT ACCOUNT BALANCECURRENT ACCOUNT DEFICITDEBTDEBT CRISISDEBT RATIODEBT RATIOSDECELERATION IN GROWTHDEPOSITDEPOSITSDEPRECIATIONDERIVATIVESDEVELOPING COUNTRIESDEVELOPING COUNTRYDIRECT INVESTMENTDOMESTIC CREDITECONOMIC ACTIVITYECONOMIC CONDITIONSECONOMIC DEVELOPMENTSECONOMIC GROWTHECONOMIC OUTLOOKECONOMIC PERFORMANCEECONOMIC POLICYECONOMIC RESEARCHELASTICITYEMERGING ECONOMIESEMERGING MARKETSEQUIPMENTEXCHANGE RATEEXCISE TAXESEXPENDITUREEXPENDITURESEXPORT GROWTHEXPORT PERFORMANCEEXPORT VOLUMEEXPORT VOLUMESEXPORTSEXTERNAL DEBTEXTERNAL SHOCKSFAMILIESFINANCIAL CRISISFINANCIAL FLOWFINANCIAL MARKETFINANCIAL SECTORFINANCIAL SUPPORTFISCAL BURDENFISCAL CAPACITYFISCAL DEFICITFISCAL DEFICITSFISCAL DISCIPLINEFISCAL POLICYFIXED CAPITALFIXED INVESTMENTFOOD PRICESFOREIGN CURRENCYFOREIGN EXCHANGEFOREIGN EXCHANGE RESERVESFOREIGN INVESTMENTFOREIGN RESERVESGDPGDP DEFLATORGDP PER CAPITAGLOBAL ECONOMYGLOBAL TRADEGOLDGOVERNMENT BANKGOVERNMENT BONDSGOVERNMENT DEBTGOVERNMENT DEFICITGOVERNMENT FINANCESGOVERNMENT INVESTMENTSGOVERNMENT SPENDINGGOVERNMENT SUBSIDIESGROSS CAPITAL FORMATIONGROSS FIXED CAPITAL FORMATIONGROSS NATIONAL SAVINGSGROWTH PERFORMANCEGROWTH RATEGROWTH RATESHEALTH CAREHEALTH FOR ALLHEALTH INTERVENTIONSHEALTH OUTCOMESHEALTH POLICYHEALTH SERVICESHOLDINGHOSPITALIZATIONHUMAN CAPITALIMPORTIMPORT DEMANDIMPORTSINCOMEINCOME ELASTICITIESINCOME TAXINFLATIONINFLATIONARY PRESSURESINSTITUTIONAL INVESTORSINSURANCEINSURANCE INDUSTRYINTEREST RATESINTERNATIONAL STANDARDSINTERVENTIONINVESTMENT RATESLABOR MARKETLABOR MARKETSLIQUIDITYLIQUIDITY RATIOLOCAL GOVERNMENTSLONG-TERM INTERESTLONG-TERM INTEREST RATESM2MARKET CONDITIONSMARKET PRICESMARKETINGMATURITYMIDDLE INCOME COUNTRIESMIGRANTSMONETARY AUTHORITYMONETARY FUNDMONETARY POLICYMONEY SUPPLYMORTALITYNATIONAL SAVINGSNEGATIVE SHOCKSNET EXPORTSNOMINAL EXCHANGE RATENONPERFORMING LOANSOIL PRICESOPEN MARKETOPEN MARKET OPERATIONSOUTTURNPARTIAL DEREGULATIONPATIENTPATIENT CHOICEPATIENTSPENSIONPOLICY RESPONSEPORTFOLIOPORTFOLIO INVESTMENTPORTFOLIO INVESTMENTSPOSITIVE EFFECTSPRIVATE CAPITALPRIVATE CAPITAL INFLOWSPRIVATE CONSUMPTIONPRIVATE INVESTMENTPRIVATE INVESTMENTSPUBLIC BANKSPUBLIC DEBTPUBLIC HEALTHPUBLIC INVESTMENTPUBLIC SPENDINGPUSH FACTORSQUALITY OF LIFEREAL EFFECTIVE EXCHANGE RATEREAL GDPREAL INCOMEREAL INTERESTREAL INTEREST RATESREMITTANCEREMITTANCESREPOREPO RATERESERVERESERVE BANKRESERVE FUNDSRETURNRISK AVERSIONRISK PREMIUMSSAVINGS RATESSECURITIESSLOWDOWNSOVEREIGN DEBTSTATUTORY LIQUIDITYSUPPLY CONSTRAINTSSURPLUSTAXTAX COLLECTIONSTAX INCENTIVESTAX POLICYTAX REVENUESTAXATIONTOTAL COSTSTOTAL DEBTTOTAL IMPORTSTOTAL REVENUETRADE BALANCETRADE CREDITSTRADE DEFICITTRADE GROWTHTREASURYTREASURY BILLSUNCERTAINTYVALUATIONWAGESWALKINGWEALTHWEALTH EFFECTWHOLESALE PRICE INDEXWORKERSWorld Bank10.1596/16542