Macroeconomic developments during 2000 including a rebound of
inflation, slowing industrial production, and downward pressure on
the rupee and stock prices and have tempered optimism for India's
macroeconomic performance during the last decade. They also
underscore the longer-standing question of whether the basis for
achieving sustained and rapid growth has yet been established in
India. Most notably, fiscal policy, structural policy &
poverty. These issues have been at the core of the ongoing policy
dialog between the IMF staff and the Indian authorities, and this
volume brings together some of the IMF staff's more recent analysis
of these topics.Four main issues are addressed. Part I explores the
factors underlying India's success in avoiding significant fallout
from the Asia crisis and addresses broader questions regarding
India's external vulnerability. Part II discusses the fiscal
situation and the extent to which recent policies pose risks to
India's growth prospects and debt sustainability. Monetary policy
and financial sector reform are considered in Part III, and
structural issues, including those related to poverty and
interstate growth and structural policy implementation are covered
in Part IV.
General
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