01.03.2010

India was one of the first countries to emerge from the global crisis, butAsia’s third largest economy is now facing policy trade-offs earlier thanother countries and, according to the IMF, should return to its longer-termreform agenda.

Advancing the financial reform agenda including a deepening and widening ofthe financial system, including the further development of the corporate bondmarkets is viewed as critical to enable the big infrastructure boost that thegovernment is planning to sustain rapid growth over the medium term. This wouldin turn require unshackling domestic institutional investors, and enhancing therole of foreign investors. The IMF projects the Indian economy will grow from6 ¾ percent in 2009/10 to 8 percent the following year, off the back of anexpected pick-up in private consumption and investment. “WithIndia’s long-term prospects remaining strong and private sector balancesheets sound, we expect growth to be back at potential in 2010/11, even ifadvanced economies grow below trend, “said the IMF’s mission chief forIndia, Kalpana Kochhar. For more detailed information please go to:

http://www.imf.org/…R020810A.htm