India : Selected Issues.

This Selected Issues paper uncovers the factors behind the unprecedented widening of India's current account deficit in terms of the sectoral savings-investment balance. The unprecedented widening of India's current account deficit in recent years is a symptom of underlying macroeconomic i...

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Detalles Bibliográficos
Autor Corporativo: International Monetary Fund. Asia and Pacific Dept
Formato: Revista
Lenguaje:English
Publicado: Washington, D.C. : International Monetary Fund, 2014.
Colección:IMF Staff Country Reports; Country Report ; No. 2014/058
Acceso en línea:Full text available on IMF
Descripción
Sumario:This Selected Issues paper uncovers the factors behind the unprecedented widening of India's current account deficit in terms of the sectoral savings-investment balance. The unprecedented widening of India's current account deficit in recent years is a symptom of underlying macroeconomic imbalances and structural weaknesses. Persistently high inflation has depressed real returns, prompting a surge in gold imports and a marked deterioration in household financial savings and the savings-investment balance. In turn, improvement in the public sector's savings-investment balance was achieved through capital spending cuts, as subsidies remained high and fuel price adjustments lagged. Further efforts to increase financial savings would help reduce the current account deficit sustainably and boost growth.
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Descripción Física:1 online resource (45 pages)
Formato:Mode of access: Internet
ISSN:1934-7685
Acceso:Electronic access restricted to authorized BRAC University faculty, staff and students