World Bank2017-08-142017-08-142010-06https://hdl.handle.net/10986/27774India'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.en-USCC BY 3.0 IGOACCOUNTINGADVERSE CONSEQUENCESAGGREGATE DEMANDAGRICULTURAL OUTPUTAGRICULTUREARREARSAUCTIONSBANK BRANCHBANK CREDITBANK INTEREST RATESBANKING SYSTEMBASIS POINTSBONDSBRANCH NETWORKBUDGET DEFICITBUYBACKSCAPACITY CONSTRAINTSCAPITAL ACCOUNTCAPITAL ACCOUNT LIBERALIZATIONCAPITAL FLOWSCAPITAL FORMATIONCAPITAL GROWTHCAPITAL INFLOWSCAPITAL MARKETCAPITAL MARKET LIBERALIZATIONCAPITAL OUTFLOWSCASH RESERVECASH RESERVE RATIOCASH TRANSFERCENTRAL BANKSCOMMODITY PRICECOMMODITY PRICESCOMPENSATION FUNDCOMPETITIVENESSCONFIDENCE INDEXCONFIDENCE INDICESCONSUMER DURABLESCONSUMER GOODSCONSUMER PRICE INDEXCONSUMERSCONSUMPTION SMOOTHINGCONVERTIBLE BONDSCREDIBILITYCREDIT GROWTHCURRENCYCURRENT ACCOUNT DEFICITDEBT CRISESDEBT CRISISDEBT INSTRUMENTSDEBT RATIOSDEBT RELIEFDEFICITSDEPOSITDEPOSIT ACCOUNTDEPOSITORSDEPOSITSDEVELOPING COUNTRIESDEVELOPING COUNTRYDEVELOPMENT BANKDEVELOPMENT FINANCEDIRECT INVESTMENTDOMESTIC CREDITDOMESTIC MARKETECONOMIC INTEGRATIONECONOMIC PERFORMANCEECONOMIC POLICIESECONOMIC SURVEYSECONOMIES OF SCALEELASTICITYEMERGING ECONOMIESEMERGING MARKETEMERGING MARKET COUNTRIESEMERGING MARKET ECONOMIESEMERGING MARKETSEND USEEQUITY MARKETEXCESS DEMANDEXCESS LIQUIDITYEXCHANGE RATEEXCISE TAXESEXPENDITUREEXPENDITURESEXPORT GROWTHEXPORTSEXTERNAL BORROWINGEXTERNAL COMMERCIAL BORROWINGEXTERNAL DEBTFINANCIAL ASSETSFINANCIAL CRISESFINANCIAL CRISISFINANCIAL INSTITUTIONSFINANCIAL MANAGEMENTFINANCIAL STABILITYFINANCIAL SYSTEMFISCAL DEFICITFISCAL DISCIPLINEFISCAL POLICIESFISCAL POLICYFIXED CAPITALFIXED INCOMEFIXED INCOME SECURITIESFOREIGN CURRENCYFOREIGN EXCHANGEFOREIGN EXCHANGE MARKETFOREIGN EXCHANGE RESERVESFOREIGN INVESTMENTFOREIGN INVESTMENTSFOREIGN INVESTORSFULL EMPLOYMENTGDPGLOBAL ECONOMYGLOBAL TRADEGOVERNMENT ACCOUNTING SYSTEMGOVERNMENT BANKGOVERNMENT BONDSGOVERNMENT BUDGETGOVERNMENT DEBTGOVERNMENT DEFICITGOVERNMENT EXPENDITUREGOVERNMENT FINANCESGOVERNMENT REVENUESGOVERNMENT SPENDINGGROWTH RATEHOLDINGSHOME MARKETHOUSEHOLD SAVINGSHUMAN CAPITALIMPLICIT SUBSIDIESINCOME TAXINDUSTRIALIZATIONINFLATIONINFLATION RATEINFLATION RATESINFLATIONARY EXPECTATIONSINFLATIONARY PRESSUREINFLATIONARY PRESSURESINFRASTRUCTURE INVESTMENTINTEREST PAYMENTSINTEREST RATESINTERNATIONAL CAPITALINTERNATIONAL FINANCEINTERNATIONAL FINANCIAL CRISESINTERNATIONAL MARKETSINTERNATIONAL SETTLEMENTSINVENTORIESINVESTINGINVESTMENT FLOWSINVESTMENT PORTFOLIOINVESTMENTS IN EQUITIESLEVEL OF DEBTLIQUIDITYLOW INTEREST RATESM3MACROECONOMIC MANAGEMENTMACROECONOMIC POLICIESMARKET PRICEMARKET PRICESMARKET SIZEMATURITYMATURITY STRUCTUREMICROFINANCEMICROFINANCE INSTITUTIONSMONETARY POLICYMONEY SUPPLYNATIONAL BANKNATIONAL SAVINGSNATURAL RESOURCESOIL PRICEOIL PRICESOPEN MARKETPENSIONSPER CAPITA INCOMEPER CAPITA INCOMESPORTFOLIOPORTFOLIO DIVERSIFICATIONPORTFOLIO FLOWSPORTFOLIO INVESTMENTPORTFOLIO INVESTMENTSPREPAYMENTPRICE INCREASESPRICE STABILITYPRIVATE INVESTMENTPRODUCTION COSTSPRODUCTIVITY GROWTHPROFIT MARGINPROVISION OF CREDITPUBLIC DEBTPUBLIC FINANCESPUBLIC SECTOR BANKSREAL EXCHANGE RATEREAL GDPREAL INTERESTREAL INTEREST RATEREAL INTEREST RATESREPOREPO RATEREPO RATESRESERVERESERVE BANKRESERVESRETURNRETURNSRISK AVERSIONRURAL BANKSRURAL COOPERATIVE BANKSSHORT-TERM CAPITALSTATISTICAL ANALYSISSTOCK MARKETSTOCKSTAXTAX COLLECTIONTOTAL DEBTTRADE CREDITSTRADINGTRANSACTIONTRANSPARENCYUNEMPLOYMENTVALUATIONVALUATION CHANGESWAGESWHOLESALE PRICE INDEXWHOLESALE PRICESReportWorld Bank10.1596/27774